The Profit & Loss Playbook: How to Keep Your Trucking Company Financially Strong

What a P&L statement tells you about your trucking company

Your Profit & Loss (P&L) statement, also known as an income statement, is a snapshot of your business’s financial health. It shows where your money comes from, what you’re spending it on, and whether you’re making or losing money.

• Income/Revenue: Earnings from freight hauling, accessorial charges, and fuel surcharges.
• Costs of goods sold: Expenses needed to directly move goods like fuel and driver pay.
• Gross profits: Subtracts cost of goods from revenue. It shows how profitable your operation is before overhead expenses.
• Expenses: Costs that are necessary to run a business like rent, back-office salaries, internet, etc.
• Net Profit (or Loss): What’s left after expenses – your bottom line.

Warning signs to watch in your P&L statement

Your P&L statement can reveal warning signs that your business is losing money or operating inefficiently. Recognizing these red flags early can help you take corrective action before small issues turn into major financial problems. Here are five key areas to watch month over month:

1. Revenue per mile

This tracks how much you earn per mile. A steady month over month decline signals inefficient pricing, excess deadhead miles, and unprofitable loads.

2. Fuel costs and surcharges

Rising fuel costs without a matching surcharge adjustment will shrink margins. Ensure your surcharge offsets fuel price fluctuations.

3. Driver payroll and hiring costs

If you see high or increasing hiring and training expenses, turnover is hurting profitability. Replacing a driver can cost over $8,000. High payroll costs relative to revenue may also indicate overstaffing or inefficiencies.

4. Maintenance and repairs

Increasing maintenance costs may mean aging trucks, deferred repairs catching up or poor preventative maintenance. Compare repair costs against revenue to catch trends early.

5. Fixed and variable costs

A rising proportion of fixed costs (like leases and insurance) versus revenue can reduce flexibility during market downturns. Monitoring this helps you adjust expenses accordingly.

How to improve financial health based on your P&L statement

Maximizing cash flow doesn’t require drastic changes—small, strategic adjustments can make a big impact. Here are five key strategies every fleet should implement based on the P&L statement.  

The 3% rule

A 3% cost reduction or revenue increase is a small but powerful way to protect profits. It’s realistic, sustainable, and prevents small inefficiencies from turning into major financial setbacks.

When to apply it:

• Shrinking Margins: A 3% cost cut can help rebalance profitability.
• Fuel Price Spikes: Improving fuel efficiency by 3% offsets rising costs.
• Rate Adjustments: A 3% rate increase helps absorb growing expenses.

The result:
Consistent, small adjustments add up, strengthening cash flow, improving margins, and increasing long-term profitability—without major disruptions.

Factoring to ease cash flow

Slow payments strain operations and limit growth. Speeding up receivables ensures steady cash flow and reduces financial pressure.

When you need it:

• Long payment terms: If customers take 30+ days to pay, faster options help bridge the gap.
• Cash flow gaps: When expenses pile up before revenue comes in, quick payments keep operations running.
• High employee training and hiring costs: Factoring reduces back-office inefficiencies, freeing up time and resources to focus on retention and operations.

The result:
More predictable cash flow, fewer financial bottlenecks, and the ability to cover expenses or invest in growth without waiting weeks for payments.

Cutting unprofitable loads

Not all freight is worth hauling. Continuously accepting low-margin loads can drain profitability and tie up resources that could be used for higher-paying opportunities.

When you need it:

• Low Revenue Per Mile: If P&L data shows consistently weak revenue per mile, it’s time to reassess load selection.
• Rising Operating Expenses: When fuel, maintenance, or payroll costs increase, dropping unprofitable loads helps maintain margins.
• Frequent Deadhead Miles: Too many empty miles between loads indicate inefficiencies in freight planning.

The result:
More profitable hauls, improved resource allocation, and better use of drivers and equipment, leading to a stronger bottom line.

Take control of your fleet’s financial future

A strong P&L statement isn’t just a report—it’s a roadmap to smarter decision-making and long-term profitability. Download our template to get started. Mastering it doesn’t require being a financial expert. It’s about understanding your numbers, spotting small inefficiencies before they grow, and making informed choices that strengthen your bottom line. 

By tracking key financial metrics, you can: 

• Catch profit leaks early and adjust before they impact your cash flow. 
• Make data-driven decisions to keep trucks moving and revenue steady. 
• Stay prepared for market shifts, rising costs, and new opportunities. 

Denim by Truckstop’s flexible factoring makes it easy to maintain steady cash flow, reduce back-office inefficiencies, and provide the reporting you need to build out your P&L with ease. With financial clarity and fewer administrative burdens, you can focus on running a more efficient and profitable operation. 

Calculate your factoring rate and apply today.