{"ok":true,"canonical_url":"https://dealroom.so/glossary/profit-loss-statement","api_url":"https://dealroom.so/api/public/glossary/profit-loss-statement","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"profit-loss-statement","term":"Profit & Loss Statement","aka":"P&L","group":"Reading the business","definition":"A financial report showing a business's revenues, costs, and profits over a period. It's crucial for understanding the historical profitability and cash flow generation of the target business.","what_it_means":"Lenders and buyers scrutinize the P&L to assess a business's financial health, identifying trends in sales, expenses, and net income. You'll need to analyze several years of P&Ls to spot inconsistencies, potential add-backs, and ensure the reported profit aligns with the seller's claims.","url":"https://dealroom.so/glossary/profit-loss-statement","official_sources":[],"related":[{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"net-income-after-federal-income-taxes","term":"Net Income After Federal Income Taxes","url":"https://dealroom.so/glossary/net-income-after-federal-income-taxes"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"add-backs","term":"Add-backs","url":"https://dealroom.so/glossary/add-backs"}],"related_questions":[{"question":"Can a non-profit organization with a for-profit subsidiary be eligible for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-non-profit-organization-with-a-for-profit-subsidiary-be-eligible-for-a-7-a-loan"},{"question":"What if my personal financial statement shows low liquid assets?","url":"https://dealroom.so/sba-loans/basics/what-if-my-personal-financial-statement-shows-low-liquid-assets"},{"question":"What steps must a lender take to mitigate loss during loan liquidation before submitting a Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-steps-must-a-lender-take-to-mitigate-loss-during-loan-liquidation-before-submitting-a"},{"question":"What are the specific requirements for naming the lender as the loss payee on a life insurance policy collateral assignment?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-naming-the-lender-as-the-loss-payee-on-a-life-insur"},{"question":"What specific steps must a lender take to mitigate loss during loan liquidation before submitting a Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-specific-steps-must-a-lender-take-to-mitigate-loss-during-loan-liquidation-before-sub"},{"question":"Can a non-profit organization receive an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-non-profit-organization-receive-an-sba-7-a-loan"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Profit & Loss Statement","url":"https://dealroom.so/glossary/profit-loss-statement","source_type":"DealRoom Data"}}