The Bottom Line is important to a company because it is one of the key indicators of financial health. A company's net income figure tells investors and creditors how much money the company has made (or lost) after all expenses have been paid. This number can be compared to previous years or other companies in order to get a sense for how well the company is performing.A strong bottom line allows a company to invest in new products, hire more employees, and pay dividends to shareholders. Conversely, a weak bottom line can lead to layoffs, reduced spending on R&D, and less money returned to shareholders. In short, the bottom line is an important indicator of whether a business is doing well or not.
