Categories: Stocks

Top Line

Top line refers to the gross sales or revenues of a company. It is the total income generated during a particular period. It is known as the ‘Top line’ because it is displayed at the top of a company’s income statement and is a figure which is primarily used for highlighting a company’s core business metric. An increasing sales or revenue figure would signify an increase in top-line growth. The company’s expenses or losses are deducted from this gross sales figure to arrive at the profit figure (also referred to as the bottom line).

Why is Top Line important?

The top line is of primary importance for investors and gives an insight into a company’s efficiency and growth. Important points to note wrt Top Line are:
1. It reflects the business of company in the specified period and demand for its products/services
2. The top line growth can be due to increase in prices/volumes, expansion or acquisition
3. Top line growth should be seen on a relative basis which means a comparison with competitors would reveal if it is growing at a better rate than its peers

abhilash.st

Share
Published by
abhilash.st

Recent Posts

PPF calculator

A PPF calculator is an online tool that helps you calculate the maturity amount at…

1 year ago

Non-Resident Indian (NRI) PPF Account

Non-resident Indians are not allowed to open a new PPF account. However, if a resident…

1 year ago

Minor Account

A PPF account can be opened by a parent or guardian on behalf of a…

1 year ago

Joint Account

PPF rules do not allow joint accounts. An account can only be opened in the…

1 year ago

Extension of PPF Account:

After the maturity of the PPF account, you have the option to extend it for…

1 year ago

Withdrawal

From the 7th financial year onwards, you can make partial withdrawals from your PPF account.…

1 year ago