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Franco

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8

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

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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.

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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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

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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Here is a great explanation:

https://bfy.tw/QfJ6

Here is a great explanation:

https://bfy.tw/QfJ6

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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.

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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You can check Investopedia for a good and broad explanation.

https://www.investopedia.com/ask/answers/difference-between-bottom-line-and-top-line-growth/

You can check Investopedia for a good and broad explanation.

https://www.investopedia.com/ask/answers/difference-between-bottom-line-and-top-line-growth/

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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.

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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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

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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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!

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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Sky China, a government-backed Chinese airline, has recently seen profits plummet due to COVID-19. Profits are down 80% in the months of February and March, but are showing early signs of a rebound in April. They've brought you in to first investigate what can be done immediatedly to prevent hemor ... Open whole case