PNL, short for “profit and loss,” is a financial term used to describe the overall performance of a business or individual over a specific period of time. It is a measure of the net income or loss generated by an entity, taking into account all revenues and expenses incurred during a given period. PNL is a crucial indicator of financial health and is often used by investors, analysts, and managers to assess the success and sustainability of a business. A positive PNL indicates that the entity has generated a profit, while a negative PNL indicates a loss. It is an essential tool for decision-making and strategic planning, as it provides a clear picture of the financial standing of an entity.