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.

bottom line

bottom line

an accounting term denoting the NET PROFIT from a business operation after all costs have been paid. In financial accounting terms, profit would be sales revenue less all the costs of production, marketing, finance, etc., and frequently after taxation charges for the period. However, profit would generally be stated before the payment of dividends or appropriation to RESERVES.
References in periodicals archive ?
is the leading provider of spend management solutions to help companies realize rapid and sustainable bottom line results.
Our staff, in turn, has gained an even deeper understanding of customer requirements, and sees further opportunities to extend the benefits our customers are seeing in their retail operations to improve their bottom lines and manage expenses in their back office operations.
Founded in 2000, Systems Aligned provides consulting, implementation and technical support services in Linux and Open Source software to companies worldwide while helping them lower costs and add to their bottom lines.
Hotels are reporting bigger bottom lines and revenue rewards received from their in-room refreshment centers and safes from eRoomSystem Technologies Inc (Nasdaq: ERMS).