A waterfall chart is a form of

data visualization Data and information visualization (data viz or info viz) is an interdisciplinary field that deals with the graphic representation of data and information. It is a particularly efficient way of communicating when the data or information is num ...

that helps in understanding the cumulative effect of sequentially introduced positive or negative values. These intermediate values can either be time based or category based. The waterfall

chart A chart (sometimes known as a graph) is a graphical representation for data visualization, in which "the data is represented by symbols, such as bars in a bar chart, lines in a line chart, or slices in a pie chart". A chart can represent tabu ...

is also known as a flying bricks chart or Mario chart due to the apparent suspension of columns (bricks) in mid-air. Often in

finance Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fina ...

, it will be referred to as a bridge. Waterfall charts were popularized by the strategic consulting firm

McKinsey & Company McKinsey & Company is a global management consulting firm founded in 1926 by University of Chicago professor James O. McKinsey, that offers professional services to corporations, governments, and other organizations. McKinsey is the oldest and ...

in its presentations to clients.Ethan M. Rasiel. ''The McKinsey Way.'' McGraw–Hill, 1999. Complexity can be added to waterfall charts with multiple total columns and values that cross the axis. Increments and decrements that are sufficiently extreme can cause the cumulative total to fall above and below the axis at various points. Intermediate subtotals, depicted with whole columns, can be added to the graph between floating columns.

Overview

The waterfall is known as a bridge or cascade; the chart portrays how an initial value is affected by a series of intermediate positive or negative values. Also, it is similar to Bar Graph.

Applications

A waterfall chart can be used for analytical purposes, especially for understanding or explaining the gradual transition in the quantitative value of an entity that is subjected to increment or decrement. Often, a waterfall or cascade chart is used to show changes in revenue or profit between two time periods. Waterfall charts can be used for various types of quantitative analysis, ranging from

inventory analysis Inventory analysis is one of the branches of Operation Research which deals in studying and understanding the stock/product mix combined with the knowledge of the demand for stock/product Product may refer to: Business * Product (business), an it ...

to performance analysis. Waterfall charts are also commonly used in

financial analysis Financial analysis (also known as financial statement analysis, accounting analysis, or analysis of finance) refers to an assessment of the viability, stability, and profitability of a business, sub-business or project. It is performed by profes ...

to display how a net value is arrived at through gains and losses over time or between actual and budgeted amounts. Changes in cash flows or income statement line items can also be shown via a waterfall chart. Other non-business applications include tracking demographic and legal activity changes over time. There are several sources for automatic creations of Waterfall Charts ( PlusX ,

Origin Origin(s) or The Origin may refer to: Arts, entertainment, and media Comics and manga * Origin (comics), ''Origin'' (comics), a Wolverine comic book mini-series published by Marvel Comics in 2002 * The Origin (Buffy comic), ''The Origin'' (Bu ...

, etc.)

References

Charts Visualization (graphics)