What is PnL

PnL, or Profit and Loss, is a financial statement that summarizes the revenues, costs, and expenses incurred by a company during a specified period. It is one of three key financial statements, along with the balance sheet and the cash flow statement. PnL statements provide information about a company's ability to generate profit by increasing revenue, reducing costs, or both. They are used by managers and investors to analyze the financial health of a company and compare performance across different accounting periods. In the context of trading, PnL refers to the profit or loss generated by a trader on a specific investment or portfolio, and is often calculated relative to the initial money "at-risk."