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 Dollar Tree (DLTR) revenue becomes net income?

For TTM through Q2 2026, Dollar Tree turned $19.7B of revenue into $1.29B of net income — a net margin of 6.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Dollar Tree (DLTR) gross, operating, and net margins?

For TTM through Q2 2026, Dollar Tree reported a gross margin of 36.7%, an operating margin of 8.5%, and a net margin of 6.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Dollar Tree (DLTR) 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.

Dollar Tree (DLTR) Income Statement Waterfall

Revenue

$19.7B

Gross Margin

+36.7%

Operating Margin

+8.5%

Net Margin

+6.5%

Income statement waterfall for Dollar Tree (DLTR) — TTM through Q2 2026

Net income: $1.29B

Margin breakdown for Dollar Tree (DLTR) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$19.7B	$19.7B
Cost of Revenue	-$12.5B	$7.25B
Gross Profit	$7.25B	$7.25B
Operating Expenses	-$5.56B	$1.69B
Operating Income	$1.69B	$1.69B
Other Income / Expense	-$18.6M	$1.67B
Pre-tax Income	$1.67B	$1.67B
Income Tax	-$410M	$1.26B
Other Items	$27.3M	$1.29B
Net Income	$1.29B	$1.29B

Revenue$19.7B
Cost of Revenue-$12.5B
Gross Profit$7.25B
Operating Expenses-$5.56B
Operating Income$1.69B
Other Income / Expense-$18.6M
Pre-tax Income$1.67B
Income Tax-$410M
Other Items$27.3M
Net Income$1.29B

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