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WHAT IS BOTTOMLINE AND WHAT IS TOPLINE?
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Answer Posted / 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).
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