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 Tootsie Roll Industries (TR) revenue becomes net income?

For TTM through Q1 2026, Tootsie Roll Industries turned $736M of revenue into $99.7M of net income — a net margin of 13.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Tootsie Roll Industries (TR) gross, operating, and net margins?

For TTM through Q1 2026, Tootsie Roll Industries reported a gross margin of 35.4%, an operating margin of 14.1%, and a net margin of 13.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Tootsie Roll Industries (TR) 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.

Tootsie Roll Industries (TR) Income Statement Waterfall

Revenue

$736M

Gross Margin

+35.4%

Operating Margin

+14.1%

Net Margin

+13.5%

Income statement waterfall for Tootsie Roll Industries (TR) — TTM through Q1 2026

Net income: $99.7M

Margin breakdown for Tootsie Roll Industries (TR) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$736M	$736M
Cost of Revenue	-$475M	$260M
Gross Profit	$260M	$260M
Operating Expenses	-$156M	$104M
Operating Income	$104M	$104M
Other Income / Expense	$33.8M	$138M
Pre-tax Income	$138M	$138M
Income Tax	-$38.2M	$99.6M
Net Income	$99.7M	$99.7M

Revenue$736M
Cost of Revenue-$475M
Gross Profit$260M
Operating Expenses-$156M
Operating Income$104M
Other Income / Expense$33.8M
Pre-tax Income$138M
Income Tax-$38.2M
Net Income$99.7M

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Tootsie Roll Industries (TR) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

TR Overview

Counters

Income Statement

Cash Flow

Capital Return

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation