How do you analyze a P&L statement?

Analyzing a P&L Statement

  1. Sales. This may seem obvious, but you should review your sales first since increased sales is generally the best way to improve profitability.
  2. Sources of Income or Sales.
  3. Seasonality.
  4. Cost of Goods Sold.
  5. Net Income.
  6. Net Income as a Percentage of Sales (also known a profit margin)

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