Table of Contents
- INTRODUCTION
- WHEN DO WE USE WATERFALL CHARTS ?
- BUTTON LOCATION FOR WATERFALL CHART
- STEPS TOCREATE A WATERFALL CHART IN EXCEL
- NOTE:CHANGING THE NAME OF THE CHART, CHANGING THE AXIS , CHANGING THE CHART STYLE ETC. IN WATERFALL CHART
- FAQs
INTRODUCTION
CHARTS are the graphic representation of any data . As we know that EXCEL is a super analytical tool, it provides us with a number of ready-to-use tools for data analysis.
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 colors, 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
WHAT IS A WATERFALL CHART IN EXCEL?
A waterfall chart is made up of small columns whose base is not on the same level and the columns rise or fall as per the increment of decrement in the value. The final value of the previous category becomes the base value of the current category. This process makes it look like a waterfall.
This chart works in a sequence where the process starts from the first column and ends up in the last.
For example, If the value increases, it’ll rise, if the next value decreases, it’ll fall from the end of the previous level.
It’ll become clearer once we try the example given below.
WHEN DO WE 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
We can find the option for the waterfall chart under the INSERT TAB.
The button for column chart is found under the INSERT TAB under the CHARTS SECTION as shown in the picture below.
STEPS TOCREATE A WATERFALL CHART IN EXCEL
EXAMPLE DETAILS
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 WATERFALL CHART can be shown by putting parentheses around the number or putting a – (negative) sign.
Let us make a waterfall chart for the same.
| MONTHLY BUDGET | |
| HEAD | AMOUNT |
| SALARY | 10000 |
| PAID GROCERIES | -2000 |
| PAID RENT | -3000 |
| PAID SCHOOL FEE | -2000 |
| PAID MISCELLANEOUS | -1000 |
| NET | 2000 |
The procedure to insert a waterfall chart are as follows:
STEPS TO CREATE 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.
In this way, we can create a waterfall chart for the situations where we need to show any INCREMENT in the VALUE and then DECREMENT in the value.
It also shows us the remaining value which can be positive or negative.
NOTE:CHANGING THE NAME OF THE CHART, CHANGING THE AXIS , CHANGING THE CHART STYLE ETC. IN WATERFALL CHART
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]
FAQs
I CAN’T FIND WATERFALL CHART IN EXCEL 2007, 2010, 2013.
Yes , you won’t find Waterfall Chart in these versions. It has been introduced in the Excel 2016 versions and higher.
CAN I CREATE TWO WATERFALL CHARTS ON ONE AXIS?
No, it won’t be possible as of now. And you can imagine how would it be readable or what will be its worth even if we create this.
CAN I CREATE A 3D WATERFALL CHART ?
No, EXCEL doesn’t allow the 3D formatting like bevel , cross, soft round etc. on the Waterfall chart as of now. So, we won’t be able to give a 3D look to our waterfall chart.
Although even then if you want, you can create the same size shapes , give them 3D look and put over a screenshot picture of your plot. [ If you don’t want to edit this chart later, or it is just for a presentation purpose.]
