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 SK hynix (SKHY) revenue becomes net income?

For TTM through Q1 2026, SK hynix turned 132T KRW of revenue into 75.1T KRW of net income — a net margin of 56.9%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are SK hynix (SKHY) gross, operating, and net margins?

For TTM through Q1 2026, SK hynix reported a gross margin of 68.3%, an operating margin of 58.6%, and a net margin of 56.9%. Each subtotal in the waterfall corresponds to one of these margins.

Why does SK hynix (SKHY) 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.

SK hynix (SKHY) Income Statement Waterfall

Revenue

132T KRW

Gross Margin

+68.3%

Operating Margin

+58.6%

Net Margin

+56.9%

Income statement waterfall for SK hynix (SKHY) — TTM through Q1 2026

Net income: 75.1T KRW

Margin breakdown for SK hynix (SKHY) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	132T KRW	132T KRW
Cost of Revenue	-41.8T KRW	90.3T KRW
Gross Profit	90.3T KRW	90.3T KRW
Operating Expenses	-12.9T KRW	77.4T KRW
Operating Income	77.4T KRW	77.4T KRW
Other Income / Expense	15.4T KRW	92.8T KRW
Pre-tax Income	92.8T KRW	92.8T KRW
Income Tax	-17.6T KRW	75.2T KRW
Net Income	75.1T KRW	75.1T KRW

Revenue132T KRW
Cost of Revenue-41.8T KRW
Gross Profit90.3T KRW
Operating Expenses-12.9T KRW
Operating Income77.4T KRW
Other Income / Expense15.4T KRW
Pre-tax Income92.8T KRW
Income Tax-17.6T KRW
Net Income75.1T KRW

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