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 American Water Works Company (AWK) revenue becomes net income?

For TTM through Q1 2026, American Water Works Company turned $5.21B of revenue into $1.1B of net income — a net margin of 21.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are American Water Works Company (AWK) gross, operating, and net margins?

For TTM through Q1 2026, American Water Works Company reported a gross margin of 43.6%, an operating margin of 36.5%, and a net margin of 21.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does American Water Works Company (AWK) 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.

American Water Works Company (AWK) Income Statement Waterfall

Revenue

$5.21B

Gross Margin

+43.6%

Operating Margin

+36.5%

Net Margin

+21.2%

Income statement waterfall for American Water Works Company (AWK) — TTM through Q1 2026

Net income: $1.1B

Margin breakdown for American Water Works Company (AWK) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$5.21B	$5.21B
Cost of Revenue	-$2.94B	$2.27B
Gross Profit	$2.27B	$2.27B
Operating Expenses	-$368M	$1.9B
Operating Income	$1.9B	$1.9B
Other Income / Expense	-$488M	$1.41B
Pre-tax Income	$1.41B	$1.41B
Income Tax	-$309M	$1.1B
Net Income	$1.1B	$1.1B

Revenue$5.21B
Cost of Revenue-$2.94B
Gross Profit$2.27B
Operating Expenses-$368M
Operating Income$1.9B
Other Income / Expense-$488M
Pre-tax Income$1.41B
Income Tax-$309M
Net Income$1.1B

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