There are a couple of specific formulas involved in a profit and loss statement. The most basic formula to find overall profitability is total revenue minus total expenses. But to break it down further, you’ll need to find your business revenue and net revenue first.
You can determine your business revenue by multiplying the total quantity of products or services sold by the sales price. Then, find your net revenue by subtracting any adjustments from the gross revenue. Finally, you can ascertain your profit by subtracting business expenses from net revenue.