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🐵 top line vs. bottom line?
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🐵 top line vs. bottom line?

Ape of Omaha
Jun 24, 2022
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🐵 top line vs. bottom line?
www.wiseape.fyi

an “income statement,” like Coca-Cola’s above, is an official report public companies have to put out every quarter to let investors know how well the company did – a.k.a. how much money was brought in and how much is left?

📖 top line:

  • literally the top line! (“Net Operating Revenues: $10,491” in the image above)

  • to really simplify, for Coca-Cola, if it were to have only one product that it sells, the top line could be something like:

    • (number of bottles sold) × (price of a bottle)

📖 bottom line:

  • you get it. the very last line! – whatever’s left of the top line

  • when $10.4M of revenue was brought into the company by selling soda bottles, before Coca-Cola takes that money and decides to buy new buildings or issue dividends to shareholders, the company needs to first subtract all the costs that it took to sell that many bottles

    • these can be very different for every business

    • for Coca-Cola here, costs can include things like sweeteners, glass bottles, people's salaries, gasoline fees

    • again, simplifying a lot a lot here


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💡 just something cool

so far this year, coca-cola’s up 4% ish. goes to show that there’s always a winner even in a bad market!

still my second week of posting… please bear with me as i try to make this better in content, design, form, etc. this will be a learning experience for myself as well!

thank you for your patience, and always send me your questions or any suggestions you have with Ask a Wise Ape!

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