What do we mean by 'bottom line' and 'top line' in business cases?

Question

Franco · Accepted Answer

Top line --> revenues

Bottom line --> profit

Let me detour a bit to stress one thing I often see candidates screwing up during interviews.

Consulting companies and especially MBB tend to focus 99% of their cases (both in real life and during interviews) on the operative part of the P&L that is revenues and operative costs alone and they use EBITDA (and not Profit) as the main profitability measure. 

So during a case interview, it is very unlikely that the path to the solution will require you to analyze depreciation, amortization, interest, or extraordinary items. If possible always stick your analyses to revenues and operative costs.

Clara · Answer

Hello!


	Top: revenue
	Bottom: net, profit


Google is always your friend for these terms, and usually with good and wide explanations

Hope it helps!

Cheers, 

Clara

Deleted · Answer

Here is a great explanation: 

https://bfy.tw/QfJ6

Denis · Answer

Top-line: Revenues, Bottom-line: Profits.

However, always make sure to clarify exactly what they mean, i.e. the accounting term (Rev, Rev-COGS, EBITDA, Net Income).

Make sure to refresh important business concepts, because this question may indicate that you lack basic knowledge in other areas too.

Deleted · Answer

Not being sarcastic, you can google/youtube this & self teach. There is more literature & content on topline/bottomline than the Kardashians :) .

If you need help in understanding a company's income statement (where topline & bottom line sit) thats a different matter..so let us know and coaches can help.

Gaurav · Answer

You can check Investopedia for a good and broad explanation.

https://www.investopedia.com/ask/answers/difference-between-bottom-line-and-top-line-growth/

Ian · Answer

Hi there,

Top line comes first. That is Revenues (i.e. all of our sales).

Bottom line is profit. This is R - C. I.e. Revenues minus all of your costs.

It's called topline because that appears on the top of a company's income statement. Bottom line (net income) comes at the bottom of the statement!

Francesco · Answer

Hi there,


	Top line: revenues
	Bottom line: net income


For similar questions – you are probably going to find the answer faster if you google them ;)

Best,

Francesco