We've got you covered
We are here to guide you in making tough decisions with your hard earned money. Drop us your details and we will reach you for a free one on one discussion with our experts.
Call us on: +917410000494
The company's top line refers to its growth sales or revenue. When we use the term "top line growth", it means the company's indication of an increase in gross sales or revenue. The top line of the income statement shows the company's revenue or sales figure. Companies that are focusing on their top lines often mean they are trying to increase sales or revenue.
Net profit is the bottom line of a company. It appears at the bottom end of the income statement. This figure is calculated after subtracting all expenses from the company’s revenue.
It is possible to say that a company is improving its bottom line if it is generating more sales while cutting its costs. If the company can find a new supplier of input material, it can help with its bottom line. This will result in cost savings.
For determining the financial health of a company, it is important to have both top and bottom line growth metrics. The company's ability to generate sales is the top line. However, it doesn't include operating efficiencies. The bottom line, on the other hand, shows how efficient the company can manage its operational expenses and other expenses. The bottom line also shows how well the company manages total costs.
A company can have both top and bottom lines simultaneously by increasing its revenue or reducing its operational expenses, which is not possible.
Open a demat account through us and get the account opening charges waived offopen paperless account