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 Cincinnati Financial (CINF) revenue becomes net income?

For TTM through Q1 2026, Cincinnati Financial turned $12.9B of revenue into $2.76B of net income — a net margin of 21.3%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Cincinnati Financial (CINF) gross, operating, and net margins?

For TTM through Q1 2026, Cincinnati Financial reported a gross margin of 50.3%, an operating margin of 26.7%, and a net margin of 21.3%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Cincinnati Financial (CINF) 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.

Cincinnati Financial (CINF) Income Statement Waterfall

Revenue

$12.9B

Gross Margin

+50.3%

Operating Margin

+26.7%

Net Margin

+21.3%

Income statement waterfall for Cincinnati Financial (CINF) — TTM through Q1 2026

Net income: $2.76B

Margin breakdown for Cincinnati Financial (CINF) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$12.9B	$12.9B
Cost of Revenue	-$6.42B	$6.5B
Gross Profit	$6.5B	$6.5B
Operating Expenses	-$3.05B	$3.45B
Operating Income	$3.45B	$3.45B
Other Income / Expense	-$13M	$3.43B
Pre-tax Income	$3.43B	$3.43B
Income Tax	-$677M	$2.76B
Net Income	$2.76B	$2.76B

Revenue$12.9B
Cost of Revenue-$6.42B
Gross Profit$6.5B
Operating Expenses-$3.05B
Operating Income$3.45B
Other Income / Expense-$13M
Pre-tax Income$3.43B
Income Tax-$677M
Net Income$2.76B

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