The Bottom Line

"The bottom line" refers to the final amount of profit or loss a business has after all expenses are deducted from revenue. It is a key indicator of financial health, showing whether a company is earning or losing money. Essentially, it's what remains at the end of the financial statement, often summarized on the last line of the income statement as net income or net loss. Understanding the bottom line helps assess whether a business is financially successful and guides decisions for growth, investment, or improvement.