How to Analyse a Profit & Loss (P&L) Statement


The three important financial statements, Balance sheet, Profit & Loss statement and cash flow statements 📃, gives us the complete picture of the company’s fundamentals. In the course of “How to read a balance sheet”, we have already levelled up the 1st step. Next, whenever the P&L statements is analysed, retail investors tend to look at the profit after tax, EPS, PE ratio, and other margins.

4 Modules

35 min


Course Outline

What will you learn?

  • Introduction to Profit & Loss Statement
  • Components of Profit & Loss Statement
  • Breaking down the P&L statement of DMart
  • Analysing Dmart's P&L statement

About Course

Before investing in a company, we usually look into the profit🧐, and it is one key factor to invest in, but what we don’t realise is that there are multiple factors that drive the profitability of the company. 

When we see these Profit or Loss figures, they were arrived at by some additions and deductions from revenues🔢. In this course, we will be learning about these components, which drive the final profit of the business, and how each of them affects the efficiency as well as the profitability of the firm and, therefore, that of investors.

These P&L components📃 individually are also derived from various sub-components mentioned in the notes to accounts. We will start this course by knowing the profit drivers and go to each of them in depth by analysing the P&L statement of a listed company.

By analysing the P&L🔍, you will be able to know the operational efficiency, growth trends, sales of the company, revenue from those sales, and many more intriguing insights which you have to know before investing.💡

What you will get?





Course Syllabus

  • Why it's Important to analyse the Profit & Loss statement?
  • Key Heads under Profit & Loss Statement
  • In depth analysis of Profit & Loss statement with the help of Annual report
  • Calculating Profits and Margins of DMart


Need answers? Find them here

There are no prerequisites for the course. However, it would be helpful if you first go through "Qualitative Analysis" and "How to read a balance sheet" as it would help you understand the quality of the business.

Quick, quicker, quickest! This course falls under the sprint category and can be completed in 35 mins duration.

In this course, you will learn to analyse the profits or loss, margins and other profit and loss statement components in detail, which will help you take better and more informed investment decisions.

No, you do not need to install any specific software for this course. However, it is advised for a user to have an active Internet connection and an updated web browser for a seamless learning experience.

Finology provides you with an opportunity to access all its tools and courses by subscribing to Finology One. Hence, you can access this course as long as your subscription to Finology One is active.

card image

Follow us:

About Finology Quest

Quest is a 101 guide for anyone who wants to learn investing. The aim of these online finance courses is to make people financially literate and to make them understand the essential financial concepts and learn company analysis, so that one can know how to create & grow their wealth in the stock market.

Why choose Quest?

Quest will make you aware about investing and the secret to growing wealth. As against popular opinion, you do not always need to earn more money to be rich. In fact, financial awareness is the key to wealth creation & Quest will help you to make this journey simpler. The courses in Quest are easy to understand and explained using close-to-reality scenarios which makes learning fun and relatable. Plus, you can access it anytime and anywhere on the go, which is a cherry on the top!

For whom the Quest is?

Quest is for anybody who wants to enjoy learning finance and investing on the go. The aim of Quest is to make people financially aware. So, if you are someone making your babysteps into the markets, look no further. From personal finance to investing, Quest is your one-stop platform for almost everything finance!


The companies discussed on this website are solely for educational purposes and should not be construed as investment advice. We may or may not hold positions in any or all of these companies. However, these aren't recommendations and hence, we held no responsibility for any consequences of investment actions based on these videos.

Quest is a product of Finology Ventures Private Limited | © 2024 All Rights Reserved. All course materials and videos are protected by the Indian Copyright Act.
Terms | Privacy