For which cases is the waterfall chart good for? Two cases:
- You need to explain a change that occurred from one time period to another. For example how did the earnings change (e.g. EBIT) from last year to this year and which factors where responsible for this change
- You want to explain how you got from point A to point B within the same time period. For example, how you went from gross sales to net income in the same month.
The Waterfall is also not just financial figures. You can use it to explain changes in statistical data, for example changes in headcount – how many new employees were hired, how many resignations or retirements your company had during the year.
One feature that makes the Waterfall a good storyteller is the connectors. These connectors, connect the bars – the delta bars to one another – they have the effect of grouping the bars – which visually indicate that they belong together – they are all a part of the same story. In this video you will see a few different Waterfall charts used in the real business world. Each of these Waterfall charts were created in Excel.
You can create these in ANY version of Excel you have.
Leila Gharani
I’ve spent over 20 years helping businesses use data to improve their results. I've worked as an economist and a consultant. I spent 12 years in corporate roles across finance, operations, and IT—managing SAP and Oracle projects.
As a 7-time Microsoft MVP, I have deep knowledge of tools like Excel and Power BI.
I love making complex tech topics easy to understand. There’s nothing better than helping someone realize they can do it themselves. I’m always learning new things too and finding better ways to help others succeed.
