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 ?
Those little things that you just need to help, you have enough confidence to get over the hump is what Bottom Line does," she said, adding it's also good for students to call their old high schools.
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.
Actuaries, by training and discipline, look to the bottom line.
Our tool focuses on those areas of a company that will most be impacted by a technology decision--in terms of their processes, how those fit in with the company's overall objective, how they impact the bottom line.
Coalitions, like any other technology, have tremendous range in how they add value to the bottom line.
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.
They are a money saver, and the bottom line benefits alone are enough reason for management to be aggressively involved in plant safety.
This results in a timing difference between expenses and revenues, as reflected in the bottom line, and will continue to play a role as we build critical mass and beyond.
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.
Chrysler Group and Delphi Corporation were presented the Shainin Bottom Line Award last night at Shainin's annual Bottom Line Dinner.
Most managers know their rewards are based on "the bottom line," despite all the rhetoric to the contrary.
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.