Definition
An income statement (P&L) summarizes revenue and expenses over a period. It shows profitability, but not necessarily cash timing.
How to use it
- Use P&L to evaluate unit economics and margins; use cash flow to evaluate runway.
- Be explicit about non-cash items (depreciation, accruals) when reconciling to cash.
Measured as
Measure Income Statement (P&L) with the same date, unit basis, and accounting or policy definitions used in the rest of your model.
Operator takeaway
- Use P&L to evaluate unit economics and margins; use cash flow to evaluate runway.
- Be explicit about non-cash items (depreciation, accruals) when reconciling to cash.
- Tie Income Statement (P&L) to the same balance-sheet date, scenario, and decision memo you are using elsewhere in the model.
- Document which claims, costs, or adjustments your team includes before comparing numbers across forecasts, covenants, or valuation work.
Next decision
- Read Unit economics hub: CAC, LTV, payback, and runway (a practical stack) if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.
- Decide whether Income Statement (P&L) belongs in cash planning, valuation, or debt monitoring so the number is used in the right model.
Where to use this on MetricKit
Guides
- Unit economics hub: CAC, LTV, payback, and runway (a practical stack): A practical hub for unit economics: CAC, fully-loaded CAC, LTV, payback, margin impacts, burn multiple, and runway planning.
- Runway and burn: gross vs net burn, working capital, and cash levers: A practical guide to runway: compute net burn, understand why cash differs from profit, and how working capital and collections change runway.