Read a P&L Like a Pro in 15 Minutes

Obtain your team or organization’s latest P&L statement. If you don’t have one, use a recent example from a case study, news article, or the book’s grilled cheese truck.

Identify gross profit, operating profit, and net profit along with corresponding margins. Highlight these lines and calculate margins as a percentage of sales. Note what each layer reveals.

Find at least two expense categories you can influence. Look for R&D, SG&A, cost of sales or others. Reflect on how your actions increase or decrease these numbers.