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 FedEx Freight Holding Company (FDXF) revenue becomes net income?

For FY 2024, FedEx Freight Holding Company turned $8.89B of revenue into $1.08B of net income — a net margin of 12.1%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are FedEx Freight Holding Company (FDXF) gross, operating, and net margins?

For FY 2024, FedEx Freight Holding Company reported a gross margin of 31.1%, an operating margin of 15.1%, and a net margin of 12.1%. Each subtotal in the waterfall corresponds to one of these margins.

Why does FedEx Freight Holding Company (FDXF) 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.

FedEx Freight Holding Company (FDXF) Income Statement Waterfall

Revenue

$8.89B

Gross Margin

+31.1%

Operating Margin

+15.1%

Net Margin

+12.1%

Income statement waterfall for FedEx Freight Holding Company (FDXF) — FY 2024

Net income: $1.08B

Margin breakdown for FedEx Freight Holding Company (FDXF) — FY 2024

Line item	Amount	Running total
Revenue	$8.89B	$8.89B
Cost of Revenue	−$6.12B	$2.77B
Gross Profit	$2.77B	$2.77B
Operating Expenses	−$1.43B	$1.34B
Operating Income	$1.34B	$1.34B
Other Income / Expense	$108.00M	$1.45B
Pre-tax Income	$1.45B	$1.45B
Income Tax	−$368.00M	$1.08B
Net Income	$1.08B	$1.08B

Revenue$8.89B
Cost of Revenue−$6.12B
Gross Profit$2.77B
Operating Expenses−$1.43B
Operating Income$1.34B
Other Income / Expense$108.00M
Pre-tax Income$1.45B
Income Tax−$368.00M
Net Income$1.08B

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