Sprint

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

Beginner

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

English

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?

PDFs

Flashcards

Assessments

Certificate

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

FAQ’s

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.

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