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Home > Blog > Data Visualization

How to Interpret Graphs and Charts Like a Professional?

Every time you visualize your data with a chart or graph, it all boils down to analytical skills in how you interpret your visualization.

how to interpret graphs and charts

Why?

In visualizing your data story, you aim to be clear and precise in your findings. You want a compelling data story that your audience can also understand. Clarity and relevance go a long way in focusing on what your audience will gain from your data visualization.

The visualization you choose determines the ease with which to interpret graphs and charts. Still, you need to eliminate less insightful information in your visualization.

This blog will help you learn the basics of chart and graph interpretation.

Table of Content:

  1. What is the Interpretation of Charts And Graphs?
  2. How to Interpret Graphs and Charts: Things to Look For
  3. How to Interpret a Graph and Chart Example?
  4. Best Tools For Interpreting Charts and Graphs
  5. Steps For Interpreting Data From Graphs
    • Step 1: Read the Title
    • Step 2: Check Axes and Scales
    • Step 3: Review Labels and Legend
    • Step 4: Spot Trends and Patterns
    • Step 5: Find Outliers and Compare
    • Step 6: Summarize Key Insights
  6. How to Interpret Charts and Diagrams?
  7. How to Read Graphs and Charts?
  8. Can You Make the Information Summary in Your Own Words?
  9. How to Interpret Graphs and Charts – FAQs
  10. Wrap Up

Let’s get started.

What is the Interpretation of Charts And Graphs?

Definition: The interpretation of charts and graphs involves understanding and explaining the information they visually present. It means examining elements like titles, axes, labels, and legends to grasp what the data shows, then analyzing patterns, trends, and anomalies.

By putting these insights in context, interpretation turns raw visuals into meaningful conclusions that support clear communication and informed decisions.

Video Tutorials: How to Interpret Graphs and Charts

How to Interpret Graphs and Charts: Things to Look For

In this section, you will put yourself in the presenter’s and the audience’s shoes. It will help you in a significant way in how you interpret graphs and charts.

It would be best to consider these factors to serve your audience effectively.

  • The topic

Look for the chart’s title and write it in your own words. The topic must be short and precise. This gives your audience a clue about what you want to communicate in your graph.

For example, if you’re using a Sunburst Chart, ensure that the title reflects the hierarchical data structure clearly and succinctly.

An example of a topic can be “Online Sales in 2020.” From such a topic, the audience will understand that you will communicate about the number of items you sell online.

  • How and What Are You Measuring?

Look for labels in your graphs and charts to familiarize yourself with what the visualization is saying. Still, labels show you the parameters and variables it displays.

For instance, in a Bar Graph of  ‘Number of Shirts sold in June,’ the y-axis will show you the number of shirts sold, and the x-axis will show you the order of weeks in June.

  • Did You Use Color Coding? If so, how?

You can use color coding in your chart or graph without taking up any extra space. Different colors have different meanings, and your audience reacts to various colors.

For instance, you can use green to show positive values and red to show negative values in a Waterfall Chart. Colors can help you see the agreement and disagreement levels in a Likert Scale Chart.

How to Interpret a Graph and Chart Example?

Let’s use an example of the chart below to help you interpret it.

how to interpret graphs and charts examples

Here’s one fact you need to know. Your eye will start reading the chart from the left as you move toward the right. That is why it is vital to place your scale on the left.

The following are the essentials you can see in the chart above:

Chart title: The title reads “Sales Order by Quarter 1 Previous) vs. Quarter 2 (Current).” The title provides clear context to your audience about the visualization.

Scale: on the y-axis, the scale reads salespersons, while the x-axis shows the sales.

Color coding: you can easily identify the difference between the current and previous financial year with different colorings. The small legend on the bottom left of the chart helps you differentiate between the two financial years.

These are some of the insights the chart reveals:

  • The length of the bar represents the number of orders by the salesperson.
  • Salesperson 3 made the lowest amount of sales for both periods.
  • Salesperson 8 is the only one who has accomplished the current period’s top orders.
  • The previous financial period was more successful for Salesperson 1 and Salesperson 7.

Best Tools For Interpreting Charts and Graphs

To create easy-to-interpret charts and graphs, you need a data visualization tool. The common spreadsheet applications you use, such as Google Sheets and Excel, are the best in the world.

This tool is a third-party application called ChartExpo. You can download it easily and customize your charts and graphs.

ChartExpo offers you many chart templates. It is up to you to choose the best chart for your data story. It is an easy-to-use tool with a budget-friendly price.

Let’s find out how to create and interpret charts and graphs with ChartExpo.

Steps For Interpreting Data From Graphs

  • Step 1: Read the Title

Begin by reading the title carefully to understand what question the graph or chart answers. Check any subtitles or notes to grasp the context or time period covered.

  • Step 2: Check Axes and Scales

Look at both the x-axis and y-axis to see what variables are being measured and the units used. Pay attention to the scale—whether it’s linear, logarithmic, or starts at zero—since this can affect interpretation.

  • Step 3: Review Labels and Legend

Study the labels, legends, and data keys to decode what colors, lines, bars, or markers represent. Properly understanding these elements avoids misreading the data.

  • Step 4: Spot Trends and Patterns

Scan the visual for overall patterns, such as upward or downward trends, cycles, clusters, or correlations. Recognizing these helps you pinpoint the main message of the chart or graph.

  • Step 5: Find Outliers and Compare

Spot any data points that stand out from the general pattern. Compare different groups, categories, or time periods to find significant differences, similarities, or unexpected results.

  • Step 6: Summarize Key Insights

Combine your observations to explain what the data shows in simple terms. Think about what factors might influence the results and what actions or decisions the insights support. Consider sharing your interpretation clearly if presenting to others.

How to Interpret Charts and Diagrams?

Sankey Diagram

Let’s use the table below to create a Sankey Diagram in Excel.

Income Sources Income Spending Sources Taxes & Savings Spending
Distributions Income Taxes Federal 914820
Distributions Income Taxes State 223879
Distributions Income Savings Stock 2691669
Distributions Income Savings Bonds 256029
Distributions Income Savings Cash 727717
Salaries Income Food & Dining 23266
Salaries Income Office 9189
Salaries Income Travel 8944
Dividends Income Health Insurance 4283
Dividends Income Shopping 5769
Interest Income Bills & Utilities 5194
Interest Income Other Expenses 8490

To get started with ChartExpo in Excel, follow the steps below:

  • Open your Excel desktop application.
  • Open the worksheet and click the Insert button to access the My Apps option.
insert chartexpo in excel
  • Click the Insert button to initiate the ChartExpo engine.
open chartexpo in excel
  • Open the ChartExpo add-in. You will see a list of charts. Click Sankey Chart on your list of visualizations as shown.
search sankey chart in excel
  • Select your worksheet data and click on Create Chart From Selection.
create sunburst chart in excel

Your final chart will appear as shown below.

sunburst chart in how to interpret graphs and charts

Insights

  • Distributions are the most significant contributor to income.
  • The biggest savings are in the form of Stock, Bonds, & Cash.
  • Companies are giving taxes to 4.59% of the State and 18.75% of Federal from the income.

Likert Scale Chart

Let’s use the data below to create a Likert Scale Chart in Google Sheets.

Questions Scale Responses
Was the product a good purchase? 1 138
Was the product a good purchase? 2 186
Was the product a good purchase? 3 176
Was the product a good purchase? 4 230
Was the product a good purchase? 5 270
Is the product affordable? 1 50
Is the product affordable? 2 138
Is the product affordable? 3 186
Is the product affordable? 4 176
Is the product affordable? 5 500
How likely are you to recommend this product to others? 1 330
How likely are you to recommend this product to others? 2 160
How likely are you to recommend this product to others? 3 200
How likely are you to recommend this product to others? 4 238
How likely are you to recommend this product to others? 5 286

Steps:

  • Open your Google Sheets application.
  • Paste the table in your worksheet.
  • Open the worksheet and click the Extensions menu.
  • Then click Charts, Graphs, & Visualizations by ChartExpo.
  • Finally, click the Open button in the dropdown.
open chartexpo in google sheets
  • Click the Add New Chart button to access your fully stocked library of charts.
add new chart in google sheets
  • You will see a list of charts. Click on the Likert Scale Chart.
search likert scale chart in google sheets
  • Select your data and Click on Create Chart.
search likert scale chart in google sheets

Your Likert Scale will appear as shown below.

likert scale chart in how to interpret graphs and charts

Insights

  • Overall view, the respondents’ positive feedback of 52%.
  • Most respondents agreed that the product was a good purchase (27%).
  • Most respondents agreed that the product was affordable (48%).

Comparison Bar Chart

Let’s use the table below to create a Comparison Bar Chart in Excel or Google Sheets.

Quarterly Product Sales Order
Quarter-1 Board Marker Box 700
Quarter-1 White Board 600
Quarter-1 A4-Size Sheets/ream 1000
Quarter-1 Blue Ball Points Box 500
Quarter-1 Pointer Box 800
Quarter-1 Glue Stick Box 1000
Quarter-1 Highlighter Box 600
Quarter-1 Box File 700
Quarter-1 Hard File 500
Quarter-1 Fiber File 550
Quarter-2 Board Marker Box 1000
Quarter-2 White Board 500
Quarter-2 A4-Size Sheets/ream 800
Quarter-2 Blue Ball Points Box 700
Quarter-2 Pointer Box 900
Quarter-2 Glue Stick Box 800
Quarter-2 Highlighter Box 600
Quarter-2 Box File 650
Quarter-2 Hard File 700
Quarter-2 Fiber File 550
Quarter-3 Board Marker Box 1200
Quarter-3 White Board 700
Quarter-3 A4-Size Sheets/ream 800
Quarter-3 Blue Ball Points Box 1000
Quarter-3 Pointer Box 900
Quarter-3 Glue Stick Box 1300
Quarter-3 Highlighter Box 800
Quarter-3 Box File 900
Quarter-3 Hard File 600
Quarter-3 Fiber File 800
  • Your final chart will appear as shown below.
comparison bar chart in how to interpret graphs and charts

Insights

  • A4-size sheets were the most items during the first quarter.
  • Board Marker Boxes were the most items in the store during the second quarter.
  • White Board was the last item in both the second and third quarters.

Radar Chart

Let’s use the table below to create a Radar Chart in Excel or Google Sheets.

Product Month Orders
TV Jan 80
TV Feb 65
TV Mar 75
TV Apr 80
TV May 90
TV Jun 85
TV Jul 65
TV Aug 70
TV Sep 80
TV Oct 93
TV Nov 99
TV Dec 80
Smart Phones Jan 100
Smart Phones Feb 60
Smart Phones Mar 95
Smart Phones Apr 75
Smart Phones May 100
Smart Phones Jun 60
Smart Phones Jul 95
Smart Phones Aug 75
Smart Phones Sep 109
Smart Phones Oct 80
Smart Phones Nov 109
Smart Phones Dec 75
Computers Jan 50
Computers Feb 55
Computers Mar 51
Computers Apr 40
Computers May 45
Computers Jun 30
Computers Jul 39
Computers Aug 45
Computers Sep 56
Computers Oct 39
Computers Nov 48
Computers Dec 44
  • Check out the final Radar Chart below.
radar chart in how to interpret graphs and charts

Insights

  • TVs performed better than other products during February, April, June, October, and December.
  • Smartphones performed well in January, March, May, July, September, and November.
  • Computers sold the least in the inventory.

How to Read Graphs and Charts?

  • Start with the Title and Purpose

Always read the title first to understand what question the graph or chart is answering. Knowing the purpose helps you focus on the key message.

  • Check the Axes and Scales

Look at the horizontal (x-axis) and vertical (y-axis) axes to see what variables are being measured and in what units. Pay attention to the scale to avoid misreading values.

  • Read the Labels and Legend

Labels explain categories or data series, while the legend decipher colors, patterns, or symbols. Together, they clarify how to interpret each visual element correctly.

  • Observe Patterns, Trends, and Outliers

Scan the chart for trends over time, comparisons between groups, and any data points that stand out from the rest. These insights often reveal important stories behind the numbers.

  • Consider the Source and Context

Think about where the data comes from and what factors might influence it. Understanding context helps you avoid misinterpretation.

  • Draw Conclusions

Finally, summarize what the graph or chart is telling you. Combine visual clues with background knowledge to extract meaningful insights and support informed decisions.

Can You Make the Information Summary in Your Own Words?

Look for an insight that interests your audience and phrase it in your own words.

With the data you want to present, draw informed conclusions from it. This strategy becomes more manageable with a chart or graph.

Charts and graphs, including the Slop chart, are a medium to communicate insights from a data store. Interpreting the information is the essence of everything you want to accomplish. This will involve much listening, explanations, and comprehension.

One chart or graph can have different stories to tell. For instance, if your chart talks about online sales in 2022, the sales will comprise other items, the number of items sold, and the amount of money from such sales.

How to Interpret Graphs and Charts – FAQs

What is the interpretation of graphs?

To interpret a graph means to read the title and the labels to know what you are measuring. Also, read the scale to note the variables you are measuring and their quantities.

You can summarize the findings in your own words, which will help you conclude.

What is the best way to make sure graphs are easy to interpret?

Using color coding is the best way to ensure your graph is easy to interpret. Colors attract the audience because their brain interprets colors differently.

Ensure that you use different colors to show your audience other variables. For instance, they can identify previous and current sales in different periods.

What is the best way to describe a graph?

The best way to describe a graph is to state what it shows, highlight key trends or patterns, mention any significant data points or outliers, and explain what these insights mean in context.

Wrap Up

In a nutshell, how to analyze graphs involves understanding how you can translate data into meaningful insights.

From what you have learned throughout the discussions, interpreting a graph requires you to have basic analytical skills. You also need to understand the nature of your visualization.

When creating data visualization, remember that it should be simple. A non-professional audience also needs to gain knowledge from your insights.

You have learned that creating such appealing visualizations will require you to use a third-party application called ChartExpo in your spreadsheet.

You have also learned that ChartExpo is an easy-to-use tool and comes with numerous charts for you to choose from.

Now that you have understood how to interpret graphs and charts, it’s your turn to give it a go.

Start a 7-day free trial today and access charts and graphs that are easy to interpret.

 

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