The bottom line—it’s a familiar term and a figure that many consider the most important item on a company’s income statement. Net income, net earnings, net profit—all of these terms mean the same thing: an organization’s income after all expenses have been deducted from revenues. So it stands to reason that the easiest way to increase the bottom line, thereby making a company more profitable, is by limiting expenses. While true, this line of thinking has led some companies to offshore inappropriately and move away from better domestic models of design and production efficiency.
On the other hand—or the other end of the income statement—is a company’s gross sales or revenue, commonly referred to as the “top line.” Top-line growth is indicative of how effective an organization is at generating sales, but does not take into account any other aspects that can negatively impact the bottom line, such as recalls or excessive service costs.