What are “top line” and “bottom line” for companies and stocks? April 27, 2012
Posted by antibeppegrillo in growth stock, investment, investment strategies.Tags: bottom line, finance dictionary, investopedia, top line
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What do bottom-line and top-line mean for stocks and companies?
The answer is simple: “TOP-LINE” means REVENUES and “BOTTOM-LINE” means EARNINGS: this graph below is a good and clear example:
Top line shows revenue and bottom line shows earningns for EBIX
The graph also helps me to understand why Revenue is called TOP LINE and Earnings BOTTOM LINE:
Since Earnings = Revenue – Expenses, then Earnings are smaller (less dollars) than Revenues. On a graph showing dollars over time, Revenues will always be the top line and Earnings the bottom line.
