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 Sonoco Products (SON) revenue becomes net income?

For TTM through Q2 2026, Sonoco Products turned $7.46B of revenue into $647M of net income — a net margin of 8.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Sonoco Products (SON) gross, operating, and net margins?

For TTM through Q2 2026, Sonoco Products reported a gross margin of 20.8%, an operating margin of 8.7%, and a net margin of 8.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Sonoco Products (SON) 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.

Sonoco Products (SON) Income Statement Waterfall

Revenue

$7.46B

Gross Margin

+20.8%

Operating Margin

+8.7%

Net Margin

+8.7%

Income statement waterfall for Sonoco Products (SON) — TTM through Q2 2026

Net income: $647M

Margin breakdown for Sonoco Products (SON) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$7.46B	$7.46B
Cost of Revenue	-$5.91B	$1.55B
Gross Profit	$1.55B	$1.55B
Operating Expenses	-$904M	$649M
Operating Income	$649M	$649M
Other Income / Expense	$166M	$815M
Pre-tax Income	$815M	$815M
Income Tax	-$172M	$643M
Net Income	$647M	$647M

Revenue$7.46B
Cost of Revenue-$5.91B
Gross Profit$1.55B
Operating Expenses-$904M
Operating Income$649M
Other Income / Expense$166M
Pre-tax Income$815M
Income Tax-$172M
Net Income$647M

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