The regular excel waterfall chart is designed to demonstrate how a start value is raised and reduced, leading to a final result. To recognize between positive and negative values, we’ll use a color-coded stacked column charts. This chart type commonly used in various sectors: you can build an excellent profit-loss or sales tracking templates using this way.
Waterfall chart – Sales volume
In our first example we’ll compare the sales from 2013 to 2014. The initial value is sales for 2013, which was $5 million.
The chart (using the floating red – green color stacks) represents the variance of sales volume level by months. The final value is the total amount of sales in 2014. The light blue stacks symbolize the initial and final points.
Excel Waterfall chart – Profit-loss
The additional example demonstrate a profit-loss chart in Excel.
The P&L report begins with an entry for revenue and decreases from revenue the costs of running the business, including write-off, cost of goods sold, operating expenses, taxes, interest expense and bonuses.
The positive P&L additions to net income appearing the positive values, the negative parts to net income showing the negative values.
These columns are used to create the floating stacks between the initial and final result.
Each floating stack is color-coded by the red (negative values) or green (positive values).
It will be easy to provide details that reveals the ability of a business to get profit by expanding revenue and shrinking costs.
Stay tuned for our next excel chart episode!
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