Bottom Line

Refers to a company's net earnings, net income or earnings per share (EPS). Bottom line also refers to any actions that may increase/decrease net earnings or a company's overall profit. A company that is growing its net earnings or reducing its costs is said to be "improving its bottom line".

The reference to "bottom" describes the relative location of the net income figure on a company's income statement; it will almost always be the last line at the bottom of the page. This reflects the fact that all expenses have already been taken out of revenues, and there is nothing left to subtract. This stands in contrast to revenues, which are considered the "top line" figures.

Most companies aim to improve their bottom lines through two simultaneous methods: growing revenues (i.e., generate top-line growth) and increasing efficiency (or cutting costs).

Investment dictionary. . 2012.

Look at other dictionaries:

  • bottom line — ˌbottom ˈline noun [countable] informal 1. the figure showing a company s total profit or loss: • The company s bottom line showed a net profit of 173 million euros. • Cost cutting moves under way at the banks should help bottom lines. 2. the end …   Financial and business terms

  • bottom line — bottom lines 1) N COUNT: usu sing, usu the N The bottom line in a decision or situation is the most important factor that you have to consider. The bottom line is that it s not profitable... The bottom line is that it did not get the best out of… …   English dictionary

  • bottom line — noun count 1. ) BUSINESS the amount of money that a business makes or loses: He keeps a careful eye on the bottom line. 2. ) the bottom line the most basic fact or issue in a situation: The bottom line is that he lied to Congress. someone s… …   Usage of the words and phrases in modern English

  • bottom line — n [singular] 1.) the bottom line used to tell someone what the most important part of a situation is, or what the most important thing to consider is ▪ The bottom line is that recycling isn t profitable. ▪ In radio you have to keep the listener… …   Dictionary of contemporary English

  • bottom line — is a term in accounting for the line in a profit and loss account that shows the final figure. It has developed a figurative meaning ‘the decisive factor or objective’, which should only be used informally: • The bottom line is that we all love… …   Modern English usage

  • bottom line — ☆ bottom line n. 1. the lowest line of the earnings report of a company, on which net profit per share of stock is shown 2. Informal profits or losses, as of a business 3. Slang a) the basic or most important factor, consideration, meaning, etc.… …   English World dictionary

  • bottom line — fig. sense is attested from 1967, from profit and loss accounting, where the final figure after both are calculated is the bottom line on the page. Also (esp. as an adj.) bottomline …   Etymology dictionary

  • bottom line — In accountancy, the bottom line is net income, and is used idiomatically to mean the conclusion …   The small dictionary of idiomes

  • bottom line — bottom line, adj. 1. the last line of a financial statement, used for showing net profit or loss. 2. net profit or loss. 3. the deciding or crucial factor. 4. the ultimate result; outcome. [1965 70] * * * …   Universalium

  • bottom line — (izg. bȁtm lȁjn) ž DEFINICIJA ekon. u poslovanju poduzeća prag rentabilnosti, granica ispod koje se ne može poslovati bez gubitka ETIMOLOGIJA engl.: donja granica …   Hrvatski jezični portal

  • bottom line — [n] conclusion determination, final decision, income, last word, loss, main point, net, profit; concept 230 …   New thesaurus

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.