In the grand world of business, topline and bottomline are the celebrity power couple—always stealing the spotlight.
- Topline is revenue—the big, flashy number that makes investors excited.
- Bottomline is profit—the number that actually determines if you’re making money or just really good at spending it.
But what about the midline?
Wait… is there even a midline? And if not, should there be one? Because …let’s be honest—business isn’t just about what you make (topline) and what you keep (bottomline). There’s a whole messy middle where money disappears like a magician’s act and CEOs pretend to understand financial statements.
So, if topline is revenue and bottomline is profit, what exactly is the midline?
Let’s investigate.
1. The Midline Exists—We Just Don’t Talk About It
In theory, the midline should be that awkward space between revenue and profit. You know, the land where costs, expenses, and financial mysteries roam freely.
Think about it:
- You make ₹10 crore in sales (topline).
- You keep ₹1 crore as profit (bottomline).
- What happened to the other ₹9 crore?
That, my friends, is where the midline lurks—hidden in the balance sheet like a ghost no one wants to acknowledge.
2. What Could the Midline Be? A Few Theories
Let’s try to define the elusive midline with some contenders:
a) Gross Profit – The “Hopeful” Midline
A lot of people assume gross profit is the midline. It’s the money left after subtracting just the direct costs of making the product (like raw materials and manufacturing).
Topline: Sales → Midline: Gross Profit → Bottomline: Net Profit
Sounds good, right? Except… gross profit is still a little too optimistic. It ignores other critical costs like marketing, salaries, rent, and the suspiciously expensive coffee machine in the breakroom.
b) EBITDA – The “Let’s Pretend We’re Profitable” Midline
Some say EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is the true midline. It’s the number companies love to use when they want to look richer than they are.
- It says, “Hey, if we ignore all those inconvenient expenses, we’re actually making a ton of money!”
- Investors see a big EBITDA and think, “Wow, this company must be doing great!” (Reality check: They might just be really good at ignoring their actual costs.)
So, EBITDA could be the midline, but it’s a bit too polished for our liking.
c) Operating Profit – The “Realistic” Midline
Now we’re talking. Operating profit (or EBIT) is what’s left after subtracting most of the major expenses—rent, salaries, marketing, logistics, and everything else it actually takes to run the business.
This is the “Let’s be honest about how much money we’re actually making” number.
- If operating profit is strong, your business has real financial muscle.
- If operating profit is weak, you might be a revenue-rich, profit-poor company (cough most startups cough).
So, if the midline were an actual thing, operating profit seems like the best candidate.
3. Why Don’t We Talk About the Midline?
Well, because it’s not glamour.
- Topline is glamour. It makes you look like a massive empire (even if you’re bleeding cash like a leaky bucket).
- Bottomline is glamour It’s what shareholders really care about.
But the midline?
It’s the messy, complicated “how the sausage is made” part of business. The place where financial reality sets in and companies realize they spend way too much on influencer marketing.
Companies don’t like to brag about their midline because:
- It’s not impressive (“Look at our okay-ish operating margin!” doesn’t sound exciting).
- It forces accountability (“Why are we spending ₹5 lakh a month on office snacks?”).
- It’s where bad decisions hide (“Oops, turns out our business model is actually a cash-burning machine.”).
4. Should We Make the Midline Official?
Honestly? Yes. It would make businesses more transparent.
Imagine if, instead of just showing revenue and profit, companies proudly displayed their midline performance:
- Healthy midline? Congrats, you run an efficient business.
- Weak midline? Uh-oh, you might be in trouble (or just really into unnecessary corporate retreats).
If we made the midline mainstream, companies would have to stop pretending revenue is profit (looking at you, early-stage tech startups).
Final Thought: The Midline Matters More Than You Think
Topline is a flex.
Bottomline is the truth.
But midline? Midline is survival.
Because at the end of the day, it’s not just about how much money you make or keep—it’s about how much money you waste in between.
Disclaimer: Read Before You Start Talking About Midlines in Board Meetings
This essay is not financial advice. If you walk into your next investor pitch talking about “midline strategy”, be prepared for blank stares and someone asking, “Is that like EBITDA?”
But if this inspires you to actually look at what happens between revenue and profit, then congratulations—you’ve just unlocked Business Level 2: Financial Reality Mode.
