P&L, also known as Profit & Loss Statement, corresponds to the German P&L and is used to determine the financial performance or profitability of the company. A P&L is often prepared on an annual basis and provides an important basis for further analysis and corporate decisions. The most important key figures that can be derived from a P&L include GOP and EBITDA. GOP stands for “Gross Operating Profit” and describes the gross operating profit or the surplus of operating income over operating expenses. EBITDA (= “Earnings before Interest, Taxes, Depreciation”) describes the profit before taxes, interest and depreciation.
