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Top Line Vs Bottom Line of Business

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  Top Line and Bottom Line of any business is always important and it is a strategy decided by the management during a particular time which area to focus or what is the growth required in both parameter's, Top Line : It is the first line item in the income statement. It is referred to the revenue generated by any business during a specific time period . Mainly the sales revenue. Bottom Line : It is showing the profit of the business after all expenses . It shows how we manages our operating expenses to get the revenue. Bottom line can be achieved when there a top line . Both parameter's are interrelated . Both are important for the business to grow and survive . But there has to be balance for each other. It is the decision of the management which area to focus to gain grown in either one parameter or look for a balanced growth. Mostly in traditional companies there will be a proportionate growth in top line and bottom line . Mainly because the operating expenses is more or ...