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 States Water (AWR) revenue becomes net income?

For TTM through Q1 2026, American States Water turned $679M of revenue into $134M of net income — a net margin of 19.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are American States Water (AWR) gross, operating, and net margins?

For TTM through Q1 2026, American States Water reported a gross margin of 57.5%, an operating margin of 30.8%, and a net margin of 19.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does American States Water (AWR) 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 States Water (AWR) Income Statement Waterfall

Revenue

$679M

Gross Margin

+57.5%

Operating Margin

+30.8%

Net Margin

+19.7%

Income statement waterfall for American States Water (AWR) — TTM through Q1 2026

Net income: $134M

Margin breakdown for American States Water (AWR) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$679M	$679M
Cost of Revenue	-$289M	$391M
Gross Profit	$391M	$391M
Operating Expenses	-$182M	$209M
Operating Income	$209M	$209M
Other Income / Expense	-$34.8M	$174M
Pre-tax Income	$174M	$174M
Income Tax	-$40.8M	$134M
Net Income	$134M	$134M

Revenue$679M
Cost of Revenue-$289M
Gross Profit$391M
Operating Expenses-$182M
Operating Income$209M
Other Income / Expense-$34.8M
Pre-tax Income$174M
Income Tax-$40.8M
Net Income$134M

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