Did you know the difference between Bottom line Revenue and Top Line Revenue, the terms that the Management uses during Quarterly Results?
A company's bottom line is its net income, or the "bottom" figure on a company's income statement. More specifically, it's a company's income after all expenses have been deducted from revenues. These expenses include interest charges paid on loans, salary to teams, 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.
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.