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 Tractor Supply (TSCO) revenue becomes net income?

For TTM through Q1 2026, Tractor Supply turned $14.80B of revenue into $815.72M of net income — a net margin of 5.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Tractor Supply (TSCO) gross, operating, and net margins?

For TTM through Q1 2026, Tractor Supply reported a gross margin of 32%, an operating margin of 7.5%, and a net margin of 5.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Tractor Supply (TSCO) 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.

Tractor Supply (TSCO) Income Statement Waterfall

Revenue

$14.80B

Gross Margin

+32.0%

Operating Margin

+7.5%

Net Margin

+5.5%

Income statement waterfall for Tractor Supply (TSCO) — TTM through Q1 2026

Net income: $815.72M

Margin breakdown for Tractor Supply (TSCO) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$14.80B	$14.80B
Cost of Revenue	−$10.07B	$4.74B
Gross Profit	$4.74B	$4.74B
Operating Expenses	−$3.63B	$1.11B
Operating Income	$1.11B	$1.11B
Other Income / Expense	−$69.74M	$1.04B
Pre-tax Income	$1.04B	$1.04B
Income Tax	−$221.84M	$815.72M
Net Income	$815.72M	$815.72M

Revenue$14.80B
Cost of Revenue−$10.07B
Gross Profit$4.74B
Operating Expenses−$3.63B
Operating Income$1.11B
Other Income / Expense−$69.74M
Pre-tax Income$1.04B
Income Tax−$221.84M
Net Income$815.72M

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Income statement waterfall for Tractor Supply (TSCO) — TTM through Q1 2026

Margin breakdown for Tractor Supply (TSCO) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of Tractor Supply (TSCO) revenue becomes net income?

+What are Tractor Supply (TSCO) gross, operating, and net margins?

+Why does Tractor Supply (TSCO) have such a high (or low) gross margin?

+What is the difference between gross, operating, and net margin?

Data & methodology

+What is this view?

+How to read this waterfall

+How is the data calculated?

+What is the USD toggle?

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