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Bottom Line |
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Bottom Line An informal term for net income. That is, the bottom line is a company's total revenue less its operating expenses, interest paid, depreciation and taxes. For example, suppose a widget manufacturer earns $1,000,000 in total revenue. The widgets cost $200,000 to make and administrative and payroll expenses total $250,000. The manufacturer also must subtract $50,000 in depreciation on widget manufacturing equipment and pay $200,000 in taxes. The manufacturer's bottom line is stated as: $1,000,000 - $200,000 - $250,000 - $50,000 - $200,000 = $300,000.
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