Waterfall chart
A waterfall chart is a form of data visualization that helps in determining the cumulative effect of sequentially introduced positive or negative values.[1] The waterfall chart is also known as a flying bricks chart or Mario chart due to the apparent suspension of columns (bricks) in mid-air.[2] Often in finance, it will be referred to as a bridge.
Waterfall charts were popularized by the strategic consulting firm McKinsey & Company in its presentations to clients.[3][4]
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[edit] Overview
The waterfall chart is normally used for understanding how an initial value is affected by a series of intermediate positive or negative values. Usually the initial and the final values are represented by whole columns, while the intermediate values are denoted by floating columns. The columns are color coded for distinguishing between positive and negative values.
[edit] Applications of waterfall charts
A waterfall chart can be used for analytical purposes, especially for understanding or explaining the gradual transition in the quantitative value of an entity which is subjected to increment or decrement. For instance, it can be used for visualizing the profit/loss which results from summation of revenue coming in from different sources and subsequent decrement of all expenses.[1]
Waterfall charts can be used for various types of quantitative analysis ranging from inventory analysis to performance analysis.
[edit] References
- ^ a b "Second base with charts: Understanding the Waterfall chart". FusionCharts Blog. 2009. http://blog.fusioncharts.com/. Retrieved 6 August 2009.
- ^ "Waterfall Charts". PTS Blog. http://peltiertech.com/Excel/Charts/Waterfall.html. Retrieved 6 August 2009.
- ^ "How to Create a McKinsey-style waterfall chart". Idea transplant. http://blog.ideatransplant.com/2008/08/how-to-create-mckinsey-waterfall-chart.html.
- ^ Ethan M. Rasiel. The McKinsey Way. McGraw–Hill, 1999.
[edit] External links
- Waterfall chart for Excel, online creation tool
- The Waterfall Chart: what it is, an example, and how to build in Excel by storytellingwithdata
- How to Build A Waterfall Chart in Tableau Software and a Superior Alternative to This Chart Type
- Video: how to make a Waterfall Chart in Excel
- Excel Waterfall Charts (Bridge Charts)
- Floating Column Charts in Microsoft Excel
- How to make waterfall charts in animated way
- Waterfall Charts in Xcelsius by Reportex
- Waterfall Charts in Xcelsius by graphomate
- Create a Waterfall Chart in less than 3 Minutes by Kemal
