‘Top Line’ is a commonly used term for ‘Total Revenue’ or ‘Total Sales’ of a company.
Example: Let’s say you start a bread business. You sell 100 breads at a price of ₹ 50 each. Your total sales or ‘top line’ will be 100 x 50 = ₹ 5000.
The ‘total sales’ figures appear at the top of the ‘Profit And Loss’ statement – which is the reason why it’s called ‘Top Line’.
On business channels, you’ll hear television anchors say: “Reliance Industries reported 20% year-on-year growth in its topline” or “Top line of Reliance Industries grew 20% YoY”
This means the total sales or total revenue of Reliance Industries has increased by 20% as compared to the same period last year.
In simple words, that’s the definition of top line. If you have any questions or doubts, kindly post a comment below.