CHARTS are the graphic representation of any data . As we know that EXCEL is a super analytical tool.
Analysis of data is the process of deriving the inferences by finding out the trends, averages etc. about different parameters.
In this article we are going to discuss about the new WATERFALL CHARTS.
WATERFALL CHARTS are used for a particular situation when we need to see the intermediate values too, before arriving to a final value.
For Example, This charts starts with the zero and shows the positive as well as negative values shown by the floating columns of different colours, and final column shows the resultant value.
If we try to create a balance sheet using this type of chart, we can derive the net profit as the final value after adding up and deducting the various INs and OUTs of the business.
Let us check the procedure to insert a WATERFALL CHART in EXCEL
WHEN TO USE WATERFALL CHARTS
This chart should be used when we want to show the cumulative effect of a series. It means we want to have a look at all the intermediate values which arrives due to addition or subtraction of the values in the previous values. This chart is helpful in creating a visual statement for the inflow and outflow of the cash in financial environment.Or it can be used to get the cumulative values at different intervals of the series.
BUTTON LOCATION FOR WATERFALL CHART
The button for column chart is found under the INSERT TAB under the CHARTS SECTION.
STEPS TO INSERT A WATERFALL CHART IN EXCEL
We can demonstrate the chart using an example.We are taking an example of monthly budget.We receive the salary and there are various expenses. The expenses in the WATER FALL CHART can be shown by putting paranethesis around the number or putting a – (negative) sign.Let us draw a water fall chart for the same.
|PAID SCHOOL FEE||-2000|
The procedure to insert a waterfall chart are as follows:
STEPS TO INSERT A WATERFALL CHART IN EXCEL:
- The first requirement of any chart is data. So create a table containing the data.[We have already created in the form of table above]
- Refer to our data above,we have created a small table for the monthly expenses.
- Select the complete table including the HEADER NAMES.
- Go to INSERT TAB> CHARTS> and click the WATERFALL button under WATERFALL as shown in the BUTTON LOCATION above and in the following picture for reference.
- The chart will be created and shown to you as the following figure.
The complete process is shown in the animated picture below.
So , we have successfully created a waterfall chart.
The chart show the income as the blue column [ positive values ] and expenditures with the red columns [negative values].
We can see the net amount left is shown with a blue column of the value 2000.
NOTE:CHANGING THE NAME OF THE CHART, CHANGING THE AXIS , CHANGING THE CHART STYLE ETC.
FOR ALL OTHER TASKS LIKE CHANGING THE NAME OF THE CHART, CHANGING THE AXIS , CHANGING THE CHART STYLE ETC. VISIT HERE [HOW TO CREATE A CHART IN EXCEL]