📊 The Profit & Loss Account Explained | Beyond the Bottom Line 📊

When you see a headline shouting “Company X reports profits!”—what does that really mean? In this Deep Dive, we go beneath the surface and unpack the Profit & Loss account (P&L), also known as the income statement, to reveal the full financial story that lies between the top line and the bottom line.

Here’s what you’ll learn:
🔹 Accruals Accounting – why profits aren’t the same as cash in the bank
🔹 The Flow of the P&L – from sales → cost of goods sold → gross profit → operating profit → final earnings
🔹 Hidden Costs & Adjustments – SG&A, depreciation, interest, exceptional items, and taxes
🔹 Dividends vs Retained Earnings – how companies decide between rewarding shareholders today or reinvesting for tomorrow
🔹 Earnings Per Share (EPS) – the key metric analysts use to compare profitability

✨ By the end, you won’t just see a company’s profit figure—you’ll understand the story behind it: how the business really operates, where its strengths and weaknesses lie, and what its financial decisions signal about future growth.

👉 Watch now to master how to read a P&L like a pro and spot the real insights hidden in the numbers!

#Finance #Accounting #ProfitAndLoss #BusinessBasics #Investing #FinancialStatements