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 ?
No matter what my problem was or what advice I needed, my counselor Deandra and Bottom Line in general were always willingly helpful and knowledgeable,'' said Ms.
Trying to improve the bottom line relative to expenditures doesn't buy cheap, but it buys quality and value.
The other side of asset management - designing and maintaining a facility for competitive marketability - provides even more challenges and opportunities to influence the bottom line.
Workers Compensation, insurance premiums and paperwork, medical bills, OSHA paperwork, equipment damage, training a replacement worker in the event of a serious accident--are all factors that siphon money from the bottom line.
This brings license revenues that have an immediate positive impact on our bottom line.
Medina might have earned a bachelor's degree without Bottom Line, it would have been "probably more stressful," she said.
Q: I agree wholeheartedly with the ideas in "Leading Beyond the Bottom Line," but it seems to be a difficult concept to express in simple terms for everyone in the organization to understand.
division of exploration and production of a large oil company, which has seen a 13 percent decline in income over the last five years, expects its recent Balanced Scorecard initiative to add $350 million to its bottom line over the next 10 years.
Many companies are now choosing class B space or even flex space instead of class A offices to reduce occupancy costs, since every $1 of reduced overhead impacts the bottom line faster than increased sales.
The Intesource tools and services are available to assist companies in the analysis and management of spend for the purpose of future decision making and, ultimately, to drive bottom line improvement.
WORCESTER - Bottom Line, a nonprofit organization that helps students get accepted to and graduate from college, hopes to open an office in the city next year, but its students are already here.
But it is the advertising component that makes or breaks the bottom line.