WHAT IS BOTTOMLINE AND WHAT IS TOPLINE?
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Answer / padma
Bottom line refers to profit or net income shown on the
bottom of the income statement.
Top line refers to sales or revenue shown on the top of the
income statement.
Is This Answer Correct ? | 97 Yes | 9 No |
Answer / sauraj tripathi
Refers to a company's net earnings, net income or earnings
per share (EPS). Bottom line also refers to any actions that
may increase/decrease net earnings or a company's overall
profit. A company that is growing its net earnings or
reducing its costs is said to be "improving its bottom line".
The reference to "bottom" describes the relative location of
the net income figure on a company's income statement; it
will almost always be the last line at the bottom of the
page. This reflects the fact that all expenses have already
been taken out of revenues, and there is nothing left to
subtract. This stands in contrast to revenues, which are
considered the "top line" figures.
Most companies aim to improve their bottom lines through two
simultaneous methods: growing revenues (i.e., generate
top-line growth) and increasing efficiency (or cutting costs).
Is This Answer Correct ? | 59 Yes | 4 No |
Answer / saibal banerjee
BOTTOMLINE IS THE NET PROFIT OF A COMPANY. IT SHOWS THE
EFFICIENCY OF THE COMPANY TO REDUCE THE RELATED COSTS. THE
TOPLINE IS THE INDICATOR OF SALES / REVENUE GROWTH. BOTH THE
TERMS MAY BE GOING IN SAME DIRECTION OR MAY NOT BE. BY HEAVY
ADVERTISEMENT EXPENDITURE, A COMPANY MAY HAVE TOPLINE
GROWTH, BUT SIMULTANEOUSLY DUE TO ADDED EXPENDITURE, MAY
HAVE BOTTOMLINE DECREASE. ON THE OTHER HAND, DUE TO ADDED
SALES & POSSIBLE EXPENDITURE CONTROL, THE SAME COMPANY MAY
HAVE BOTH GROWTH IN TOPLINE AS WELL AS BOTTOMLINE.
Is This Answer Correct ? | 27 Yes | 2 No |
Answer / simran
company's bottom line is its net income, or the "bottom"
figure on a company's income statement.
More specifically, the bottom line is a company's income
after all expenses have been deducted from revenues. These
expenses include interest charges paid on loans, general
and administrative costs and income taxes. A company's
bottom line can also be referred to as net earnings or net
profits.
The top line refers to a company's gross sales or revenues.
Therefore, when people comment on a company's "top-line
growth", they are making reference to an increase in gross
sales or revenues.
For example, a company would be experiencing top-line
growth if a new advertising campaign caused a 15% increase
in sales for its widgets, which resulted in an increase of
$2 million to the revenue. Bottom-line growth would occur
in a situation where a company found a new supplier for raw
materials that results in a cost savings of $4 million.
Both these figures are useful in determining the financial
strength of a company, but they are not interchangeable.
Bottom line describes how efficient a company is with its
spending and operating costs and how effectively it has
been controlling total costs. Top line, on the other hand,
only indicates how effective a company is at generating
sales and does not take into consideration operating
efficiencies which could have a dramatic impact on the
bottom line.
However, this is not to say that a company cannot
experience both top-line and bottom-line growth at the same
time. This can be achieved if a company earns more revenue
(top line) and reduces its operating costs (bottom line).
Is This Answer Correct ? | 19 Yes | 0 No |
Answer / ashok g.k
IN simple Bottomline is net profit of the comp. and Top
line is Revenue or sales of the company
Is This Answer Correct ? | 6 Yes | 1 No |
Answer / zoeb lobo
Top line is corporate net sales, that is, total
revenue/income generated by a business.
Bottom line is the profit/loss number, after all
expenditures/liabilities have been discounted from net
sales.
Both of these terms come from the accounting document known
as the income statement, or Profit/Loss account. Top line
is the first line of that document, and bottom line is the
last line in that document.
When companies talk about the need to increase their top
line, they are talking about the need to focus on
generatins/increasing sales. Bottom Line efforts are
usually aimed toward cost reduction to increase the margin
and therefore increase the result.
Is This Answer Correct ? | 4 Yes | 0 No |
Answer / moses otieno
in public health, bottom line is improved performance of health system indicators in a population like; reduced under five mortality rate, reduced maternal mortality rate, reduced treatment defaulter rate, increased cure rate, improved sanitation, while top line is the increased government spending towards provision of health care like African states increasing budgetary allocation towards health in line with the Abuja declaration of committing 15% of national budget.
Is This Answer Correct ? | 1 Yes | 1 No |
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