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 Ashland (ASH) revenue becomes net income?

For TTM through Q1 2026, Ashland turned $1.81B of revenue into -$706M of net income — a net margin of -39%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Ashland (ASH) gross, operating, and net margins?

For TTM through Q1 2026, Ashland reported a gross margin of 25.2%, an operating margin of 4.3%, and a net margin of -39%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Ashland (ASH) 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.

Ashland (ASH) Income Statement Waterfall

Revenue

$1.81B

Gross Margin

+25.2%

Operating Margin

+4.3%

Net Margin

-39.0%

Income statement waterfall for Ashland (ASH) — TTM through Q1 2026

Net income: -$706M

Margin breakdown for Ashland (ASH) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$1.81B	$1.81B
Cost of Revenue	-$1.35B	$456M
Gross Profit	$456M	$456M
Operating Expenses	-$378M	$78M
Operating Income	$78M	$78M
Other Income / Expense	-$713M	-$635M
Pre-tax Income	-$635M	-$635M
Income Tax	-$50M	-$685M
Other Items	-$21M	-$706M
Net Loss	-$706M	-$706M

Revenue$1.81B
Cost of Revenue-$1.35B
Gross Profit$456M
Operating Expenses-$378M
Operating Income$78M
Other Income / Expense-$713M
Pre-tax Income-$635M
Income Tax-$50M
Other Items-$21M
Net Loss-$706M

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Ashland (ASH) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

ASH Overview

Counters

Income Statement

Cash Flow

Capital Return

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation