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What do we mean by 'bottom line' and 'top line' in business cases?

business concepts
New answer on Apr 03, 2021
8 Answers
3.3 k Views
Anonymous A asked on Apr 02, 2021

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Franco
Expert
replied on Apr 03, 2021
Ex BCG Principal | INSEAD | 10 yrs in consulting | Interviewed >200 Career Switchers, MBAs, Undergrads in Europe and USA

Top line --> revenues

Bottom line --> profit

Let me detour a bit to stress one thing I often see candidates screwing up during interviews.

Consulting companies and especially MBB tend to focus 99% of their cases (both in real life and during interviews) on the operative part of the P&L that is revenues and operative costs alone and they use EBITDA (and not Profit) as the main profitability measure.

So during a case interview, it is very unlikely that the path to the solution will require you to analyze depreciation, amortization, interest, or extraordinary items. If possible always stick your analyses to revenues and operative costs.

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Clara
Expert
Content Creator
replied on Apr 03, 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

  • Top: revenue
  • Bottom: net, profit

Google is always your friend for these terms, and usually with good and wide explanations

Hope it helps!

Cheers,

Clara

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Henning
Expert
replied on Apr 02, 2021
Bain | passed >15 MBB interviews as a candidate
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Denis
Expert
replied on Apr 03, 2021
Goldman Sachs Investment Banker NYC | Ex-Bain 5 yrs| MBA Chicago Booth | Passed > 13 MBB > 20 IB interviews

Top-line: Revenues, Bottom-line: Profits.

However, always make sure to clarify exactly what they mean, i.e. the accounting term (Rev, Rev-COGS, EBITDA, Net Income).

Make sure to refresh important business concepts, because this question may indicate that you lack basic knowledge in other areas too.

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Gaurav
Expert
Content Creator
replied on Apr 02, 2021
Ex-Mckinsey|Certified Career Coach |Placed 500+ candidates at MBB & other consultancies
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Adi
Expert
Content Creator
replied on Apr 02, 2021
Accenture, Deloitte | Precision Case Prep | Experienced Interviewer & Career Coach | 15 years professional experience

Not being sarcastic, you can google/youtube this & self teach. There is more literature & content on topline/bottomline than the Kardashians :) .

If you need help in understanding a company's income statement (where topline & bottom line sit) thats a different matter..so let us know and coaches can help.

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Francesco
Expert
Content Creator
replied on Apr 03, 2021
#1 Coach for Sessions (4.000+) | 1.500+ 5-Star Reviews | Proven Success (➡ InterviewOffers.com) | Ex BCG | 10Y+ Coaching

Hi there,

  • Top line: revenues
  • Bottom line: net income

For similar questions – you are probably going to find the answer faster if you google them ;)

Best,

Francesco

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Ian
Expert
Content Creator
replied on Apr 03, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi there,

Top line comes first. That is Revenues (i.e. all of our sales).

Bottom line is profit. This is R - C. I.e. Revenues minus all of your costs.

It's called topline because that appears on the top of a company's income statement. Bottom line (net income) comes at the bottom of the statement!

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