How to shape your P&L
As I extensively explained in my book La cuenta de resultados, every entrepreneur has to design its own P&L, because the P&L is the most powerful tool in management hands.
Just as a reminder, here is an example of a quite personalized P&L structure:
= Net sales
- Product direct costs
= Product gross margin
- Commercial sales cost
- Logistics sales cost
= Global gross margin (or net margin)
- Operations structural costs
- Support structural costs
- Marketing costs
= Results from operations (EBITDA)
+/- Financial income or costs
= Ordinary results
+/- Extraordinary income or costs
= Income before taxes
= Net income
As I explain in my book, the P&L structure has to be adapted to the company organization and strategy. There are not to equal P&L because there are not to equal companies.
I hope this helps my readers to understand the importance of the P&L and the need of a good and personalized design.