Welcome to the Investors Trading Academy talking glossary of financial terms and events.
Our word of the day is “Top Line” 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.
For example, a company would be experiencing top-line growth if a new advertising campaign
caused a 15% increase in sales for its widgets, which resulted in an increase of $2 million
to the revenue.
Bottom-line growth would occur in a situation where a company found a new supplier for raw
materials that result in a cost savings of $4 million.
Top Line is Gross Revenues; that is, every single dollar that comes in the door from
the sale of your product or services.
Bottom Line is Net Profit; the final amount of profit or loss you end up with after paying
all your expenses