Bottom Line

  

If you’re the type that likes to tell long-winded stories, your friends might frequently ask, “Will you get to the bottom line?” Although, uh...there might be a few four-letter words thrown in there for effect.

In the finance world, the bottom line refers to the profit shown at the end of a company’s income statement that subtracts total costs from total revenue. It could be labeled as "net income" or "earnings per share."

If a company is not happy with its bottom line at the end of a month, quarter, or year, it has two choices: reduce costs or increase revenue (or both). Reducing costs could mean the painful experience of having to lay off employees, or trying to lower the cost of raw materials or administrative expenses. (Say good-bye to free coffee.)

As this tactic alone often results in a downward spiral, many decide it’s time to find new markets, introduce new products, sell properties, increase prices, or expand overseas in order to increase revenue. And if a bottom line is positive, the company could use the profit to issue a dividend, buy back stock, invest in new equipment, pay back loans...or bring back the free coffee.

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Finance: What are normalized earnings?5 Views

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Finance allah shmoop what are normalized earnings All right this

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is norm or it's supposed to be We just couldn't

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public domain version of norm from cheers Sorry And this's

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normal that's a bell curve Yeah you're in the ebola

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case Well you know a few hundred million peoples faces

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start melting off like you know that scene in indiana

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jones you know the good ones so your earnings are

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usually here and here and here and here a buck

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a buck twelve twenty three twenty four years I'm like

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that But then one year after miss malaria's high school

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biology class takes a field trip to study monkeys bats

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and beetle crap in caves in central ghana Well your

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nine dollars and forty two cents a share And since

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search term index that thing well next year you'll still

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learn five seventeen to share even though most the ebola

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you know normal and you could plot some kind of

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line through them And if someone asked you what normalized

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earnings are in your little ebola abatement company well you

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