The bottom line in business refers to a business’s net income, net earnings, or net profit . It is referred to as the bottom line as it is found at the bottom of the net income financial statement. The bottom line is calculated by deducting expenses from revenues.
What is top line vs bottom line?
The top line is a gross figure of all revenue earned in the statement period , while the bottom line refers to the net figure after taking into account the costs of earning the revenue. The bottom line reflects the net income, which is often listed as the last, or bottom, line on a company’s income statement.
Is bottom line and profit the same?
The bottom line is a company’s 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. ... A company’s bottom line can also be referred to as net earnings or net profits.
What is bottom line growth?
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.
What is bottom line oriented?
1 : concerned only with cost or profits . 2 : pragmatic, realistic. bottom line. noun.
What is another word for bottom line?
In this page you can discover 31 synonyms, antonyms, idiomatic expressions, and related words for bottom line, like: final decision , main idea, the-bottom-line, point, RightNow, last-word, crux, net income, conclusion, fundamentals and FrontRange.
Is operating income a bottom line?
Operating profit is the company’s total income before subtracting interest and income taxes . ... Net income is the final number on the company’s income statement, hence the informal term “bottom line.” Net income is EBIT less interest and the company’s tax expense.
What is P&L?
What Is a Profit and Loss (P&L) Statement? The term profit and loss (P&L) statement refers to a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period , usually a quarter or fiscal year.
Why is bottom line important?
The Bottom Line on the Bottom Line
It is an important indicator of overall conditions in the company’s target markets . It is also a barometer of management’s effectiveness in selecting strategies, investing in products and services, marketing, and cost control.
What is more important bottom line or top line sales?
The bottom line is very important — but it’s the top line that brings growth to the company and breathing room to enact changes that improve products, production, quality and the customer’s buying experience.
What is a bottom line strategy?
The bottom line refers to a company’s net income , which is presented at the bottom of the income statement. Management can increase the bottom line by enacting strategies to increase revenues or decrease expenses.
Why is net income called the bottom line?
Net income is informally called the bottom line because it is typically found on the last line of a company’s income statement (a related term is top line, meaning revenue, which forms the first line of the account statement).
How do you use bottom line in a sentence?
- The bottom line is the bottom line.
- The bottom line is that recycling isn’t profitable.
- The bottom line is that it’s not profitable.
- Bill signed on the bottom line with a flourish.
- Two thousand-and that’s my bottom line!
- She says £95,000 is her bottom line.
How do you write a bottom line?
Place any conclusions or decisions first, then give supporting facts and reasons. If your audience is receptive or indifferent, place your bottom line on top . If your audience is resistant, put your bottom line between two positive statements. If your document is long, recap any key ideas or needs at the end.
Is the bottom line an idiom?
The phrase the bottom line, like many idioms, has its roots in a literal meaning.
What is bottom line impact?
BOTTOM LINE IMPACT, a leader in write-off recovery solutions for the utility industry , allows utilities to discover hidden revenue in their active customer base. ... Once identified, this money can be transferred from inactive owing accounts to active accounts, drastically reducing write-off expense.
