Top line vs bottom line!! Both top line and bottom line are crucial figures used to assess a company’s financial health, but they represent different aspects of its performance. Here’s a breakdown to understand the difference: Top Line Also referred to as gross sales or revenue. Represents the total amount of money a company generates from its core business activities during a specific period (usually a quarter or a year). It’s calculated by multiplying the selling price of a product or service
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Here is the difference between top line and bottom line - Top line refers to your total income from all sources, like your Shopify store, Amazon, retail, etc. Subtract your inventory costs, known as the cost of goods sold (COGS), from the top line to get your gross profit (the middle line). Then, deduct other expenses like marketing, salaries, and rent to arrive at your net profit, which is the bottom line. And that's the top and bottom line! Follow to see more business-related content :) | Vana
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