How to represent data using a waterfall chart?

To represent data using a waterfall chart, start with a baseline value and add/subtract values to show changes.

A waterfall chart is a visual representation of data that shows how an initial value is affected by various positive and negative factors. It is useful for analysing changes in financial data, such as profit and loss statements. To create a waterfall chart, start with a baseline value and then add or subtract values to show how the data changes over time.

For example, let's say a company had a revenue of £100,000 in the first quarter of the year. In the second quarter, they had an increase in sales of £20,000, but also had to pay £10,000 in expenses. To create a waterfall chart, start with the baseline value of £100,000 and then add the positive value of £20,000 to show the increase in sales. Then, subtract the negative value of £10,000 to show the expenses. The resulting chart would show the company's revenue for the second quarter as £110,000.

Waterfall charts can also be used to show cumulative changes over time. For example, if a company had a revenue of £100,000 in the first quarter, £120,000 in the second quarter, and £150,000 in the third quarter, the waterfall chart would start with the baseline value of £100,000 and then add the positive value of £20,000 for the second quarter and £30,000 for the third quarter. The resulting chart would show the company's total revenue for the year as £250,000.

Overall, waterfall charts are a useful tool for visualising changes in data over time. By starting with a baseline value and adding or subtracting values, you can easily see how the data changes and identify trends and patterns.