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What does bottom line mean on a company's income statement?

The bottom line refers to a company's earnings, profit, net income, or earnings per share (EPS). The reference to the bottom line describes the relative location of the net income figure on a company's income statement .

What is a bottom line in accounting?

The bottom line refers to the net income of a company for a certain period. It is recorded on the bottom line of the net income financial statement. The bottom line is calculated by subtracting expenses from gross sales or revenues, and it shows how profitable the business was during a specific accounting period.

How do you write an income statement?

Your income statement follows a linear path, from top line to bottom line. Think of the top line as a “rough draft” of the money you’ve made—your total revenue, before taking into account any expenses—and your bottom line as a “final draft”—the profit you earned after taking account of all expenses.

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