Top Line And Bottom Line. Both the top line and bottom line figures are useful in determining the financial strength of a company. Traditionally companies will tend to set growth top line and cost cutting bottom line targets simultaneously to make sure they optimise their profit margins and maximise the economic benefit of their revenue growth.
That is every single dollar that comes in the door from the sale of your product or services. Top line growth is an increase in a firms revenue or sales. The majority of listed companies reported improvement in their top line and bottom line during the july september quarter of this financial year april 2021 march 2022 care ratings said in its q2 performance report.
The bottom line indicates the net income of the company income after deducting all expenses.
Both the top line and bottom line figures are useful in determining the financial strength of a company. It also highlights how the company controls total. The bottom line in business is a companys net income. Increases in top line do not necessarily always result in an increase in the bottom line.