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 Williams Companies (WMB) revenue becomes net income?

For TTM through Q1 2026, Williams Companies turned $11.9B of revenue into $2.84B of net income — a net margin of 23.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Williams Companies (WMB) gross, operating, and net margins?

For TTM through Q1 2026, Williams Companies reported a gross margin of 62.8%, an operating margin of 38.8%, and a net margin of 23.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Williams Companies (WMB) 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.

Williams Companies (WMB) Income Statement Waterfall

Revenue

$11.9B

Gross Margin

+62.8%

Operating Margin

+38.8%

Net Margin

+23.8%

Income statement waterfall for Williams Companies (WMB) — TTM through Q1 2026

Net income: $2.84B

Margin breakdown for Williams Companies (WMB) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$11.9B	$11.9B
Cost of Revenue	-$4.43B	$7.49B
Gross Profit	$7.49B	$7.49B
Operating Expenses	-$2.87B	$4.62B
Operating Income	$4.62B	$4.62B
Other Income / Expense	-$765M	$3.86B
Pre-tax Income	$3.86B	$3.86B
Income Tax	-$908M	$2.95B
Other Items	-$112M	$2.84B
Net Income	$2.84B	$2.84B

Revenue$11.9B
Cost of Revenue-$4.43B
Gross Profit$7.49B
Operating Expenses-$2.87B
Operating Income$4.62B
Other Income / Expense-$765M
Pre-tax Income$3.86B
Income Tax-$908M
Other Items-$112M
Net Income$2.84B

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