What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of Ally Financial (ALLY) revenue becomes net income?

For TTM through Q2 2026, Ally Financial turned $15.8B of revenue into $1.45B of net income — a net margin of 9.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Ally Financial (ALLY) gross, operating, and net margins?

For TTM through Q2 2026, Ally Financial reported a gross margin of 49.7%, an operating margin of 11.6%, and a net margin of 9.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Ally Financial (ALLY) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

Ally Financial (ALLY) Income Statement Waterfall

Revenue

$15.8B

Gross Margin

+49.7%

Operating Margin

+11.6%

Net Margin

+9.2%

Income statement waterfall for Ally Financial (ALLY) — TTM through Q2 2026

Net income: $1.45B

Margin breakdown for Ally Financial (ALLY) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$15.8B	$15.8B
Cost of Revenue	-$7.97B	$7.87B
Gross Profit	$7.87B	$7.87B
Operating Expenses	-$6.04B	$1.84B
Operating Income	$1.84B	$1.84B
Pre-tax Income	$1.84B	$1.84B
Income Tax	-$382M	$1.45B
Net Income	$1.45B	$1.45B

Revenue$15.8B
Cost of Revenue-$7.97B
Gross Profit$7.87B
Operating Expenses-$6.04B
Operating Income$1.84B
Pre-tax Income$1.84B
Income Tax-$382M
Net Income$1.45B

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