the bottom line

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sky753

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Hello Everyone,

In the following paragraph, what does the bottom line and the top line mean?


Innovation is nowdriving the growth of the whole business and manufacturing industry as companies realize they must innovate to remain competitive in today's global market. In the last century companies sought to strengthen their competitiveness by increasing productivity . Today, in addition to improving the bottom line through increases in productivity, companies are aiming to grow the top line through investment in innovation.

I think both of them mean profits??:)

Regards

Sky
 

SoothingDave

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Not a teacher.

The bottom line always means profits. When the math is done, there is one figure left at the bottom of the page: did you make money or lose money?

"Top line" I can't say I have heard. I think they mean the initial investment in modernizing stuff.
 

sarat_106

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Hello Everyone,

In the following paragraph, what does the bottom line and the top line mean?


Innovation is nowdriving the growth of the whole business and manufacturing industry as companies realize they must innovate to remain competitive in today's global market. In the last century companies sought to strengthen their competitiveness by increasing productivity . Today, in addition to improving the bottom line through increases in productivity, companies are aiming to grow the top line through investment in innovation.

I think both of them mean profits??:)

Regards

Sky

Both of them refer to approach leading to proffit. The objective of any business whether manufacturing or trading, is to increase profit or margin on sales. In any books of account (profit/loss statements)the top-line refers to sales and the bottom line to expenses. So to achieve the objective, you can have a two way approach (1) the bottom line approach is to reduce expenses by increasing productive or (2) top line approach by increasing gross sales through innovation in investment. An investment in merger and acquisition to achieve higher sale is an innovative investment.
 
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Tdol

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So to achieve the objective, you can have a two way approach (1) the bottom line approach is to reduce expenses by increasing productive or (2) top line approach by increasing gross sales through innovation in investment.

Though, in general, it could be any way of 1) driving down costs and 2) driving sales up
 
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