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 Clorox (CLX) revenue becomes net income?

For TTM through Q1 2026, Clorox turned $6.76B of revenue into $756M of net income — a net margin of 11.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Clorox (CLX) gross, operating, and net margins?

For TTM through Q1 2026, Clorox reported a gross margin of 43.8%, an operating margin of 15.7%, and a net margin of 11.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Clorox (CLX) 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.

Clorox (CLX) Income Statement Waterfall

Revenue

$6.76B

Gross Margin

+43.8%

Operating Margin

+15.7%

Net Margin

+11.2%

Income statement waterfall for Clorox (CLX) — TTM through Q1 2026

Net income: $756M

Margin breakdown for Clorox (CLX) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$6.76B	$6.76B
Cost of Revenue	-$3.8B	$2.96B
Gross Profit	$2.96B	$2.96B
Operating Expenses	-$1.9B	$1.06B
Operating Income	$1.06B	$1.06B
Other Income / Expense	-$72M	$988M
Pre-tax Income	$988M	$988M
Income Tax	-$218M	$770M
Other Items	-$14M	$756M
Net Income	$756M	$756M

Revenue$6.76B
Cost of Revenue-$3.8B
Gross Profit$2.96B
Operating Expenses-$1.9B
Operating Income$1.06B
Other Income / Expense-$72M
Pre-tax Income$988M
Income Tax-$218M
Other Items-$14M
Net Income$756M

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