Understanding Top line and Bottom line?
Understanding Top line and Bottom line? Top line – It’s the revenues generated by a company or what you might call the gross sales. When people talk about the company’s “topline growth”, they refer to an increase in its gross sales or revenues. When companies speak about the need to increase their topline, they are discussing about the need to focus on generating/increasing sales. This is money that is coming in before any expenses are deducted. Bottom line – The bottom line is the income that is left after all expenses have been deducted. You might also call this the company’s net profit. Some of the expenses that are usually being deducted are things like loan repayments, loan interests, administrative costs, taxes and even salary to employees. So there could be a big difference between the Top line revenues and the Bottom line revenues. A company’s bottomline can also be referred to as net earnings. Bottomline usually shows the efficiency of the company in controlling ...