Categories
Are you looking for a way to visualize different data points in Excel? A Stacked Waterfall Chart in Excel is just what you need. It allows you to visualize data comprehensively and intuitively.
In this blog, you will learn:
Definition: A stacked Waterfall Chart shows changes in values over time or between multiple data sets. It can show the cumulative effect of a data series or compare multiple data series.
A Stacked Waterfall uses a combination of stacked bars and columns to show the data points. The bars and columns are placed side by side to build the chart.
The chart also includes a total bar, which shows the sum of all the data points in a category or series. Also known as a Waterfall Chart, it displays the bridge that connects the starting point to the endpoint.
It’s a great way to illustrate the contributions of different values to a total sum. Data analysis gets easier by displaying the individual items as bars and the total sum as a total bar.
A stacked waterfall graph is a powerful tool for visualizing how multiple components contribute to changes in a value. Here are four key reasons to use it:
These represent the stages or time periods across which the values change (e.g., months, departments, product lines).
Each bar is broken into segments (stacks) that represent different sub-categories. Together, they show the total value at each step, along with individual contributions.
These lines or spaces visually connect each bar to show the flow from one stage to the next. They help track the cumulative effect.
Different colors are used to distinguish between positive, negative, and subtotal components, and between the different sub-categories in each stack.
Some bars are used to highlight final totals or key checkpoints. These are often formatted differently (e.g., solid color) to stand out.
This Stacked Waterfall offers a clear breakdown of how a company’s profit is derived from its revenue after accounting for costs.
The stacked nature of the chart helps illustrate the cumulative effect of each cost element on the overall profitability. It’s an effective way to highlight how different components contribute to financial results, making it a powerful tool for business analysis in Excel.
First, you will need to organize your data into columns and rows. Each row should have a different series of data. Once you organize the data, you can create the chart. Upon creating the chart, you can customize it by adding labels, changing the colors and font sizes, or adding a legend.
How to Install ChartExpo on Excel?
ChartExpo charts are available both in Google Sheets and Microsoft Excel. Please use the following CTA’s to install the tool of your choice and make creative data visualizations in a few clicks in your favorite tool.
Here is the cash flow data for a certain business. Let’s create a Chart of this data:
| Stacks | Bridges | Amount |
| Sales | Mobiles | 20025 |
| Sales | Tablets | 9746 |
| Sales | PCs | 7095 |
| Services | Mobiles | 3959 |
| Services | Tablets | 6650 |
| Services | PCs | 9077 |
| Total Revenue | Mobiles | 23984 |
| Total Revenue | Tablets | 16396 |
| Total Revenue | PCs | 16172 |
| Marketing | Mobiles | -4630 |
| Marketing | Tablets | -2360 |
| Marketing | PCs | -2650 |
| Transportation Cost | Mobiles | -2150 |
| Transportation Cost | Tablets | -935 |
| Transportation Cost | PCs | -965 |
| Salaries | Mobiles | -3360 |
| Salaries | Tablets | -2340 |
| Salaries | PCs | -1130 |
| Wages | Mobiles | -3510 |
| Wages | Tablets | -2390 |
| Wages | PCs | -930 |
| Operating Cost | Mobiles | -640 |
| Operating Cost | Tablets | -3700 |
| Operating Cost | PCs | -1240 |
| Taxes | Mobiles | -4180 |
| Taxes | Tablets | -1800 |
| Taxes | PCs | -5460 |
| Net Income | Mobiles | 5514 |
| Net Income | Tablets | 2871 |
| Net Income | PCs | 3797 |
Issue: The chart’s final totals don’t reflect the actual sum of values.
Fix: Double-check your data inputs and formulas. Ensure that subtotals are not mistakenly included in the calculations, and all components are added or subtracted correctly.
Issue: Positive and negative values use the same color, making it hard to interpret.
Fix: Manually assign colors to each series. Use a consistent color scheme (e.g., green for increases, red for decreases) to improve readability and impact.
Issue: The chart shows clustered or overlapping bars instead of stacked ones.
Fix: Ensure your data layout follows Excel’s stacked chart format, with sub-categories in separate columns and proper headers. Use a stacked column chart type when inserting.
Issue: The flow between stages is visually misaligned or confusing.
Fix: Sort your data in logical order and avoid blank cells or hidden rows. Also, review how Excel interprets “bridge” or “intermediate” values between categories.
Issue: Viewers can’t tell what each bar or segment represents.
Fix: Turn on data labels and format them to show exact values. Position them clearly above or inside each bar for easy viewing.
Color plays a major role in helping your audience interpret the chart quickly. Use one color to represent positive values (such as green) and another for negative values (like red). Reserve a neutral or darker color for totals or final values to make them stand out. This visual distinction helps readers instantly understand what’s driving the increase or decrease.
Organize related sub-categories within each bar to maintain clarity. For example, group similar expenses or revenue types together. This makes it easier for viewers to see how each segment contributes to the overall change and understand the structure behind the data.
Data labels are essential when working with both positive and negative values. Add labels to each segment and use axis titles and a clear legend. This ensures your audience doesn’t have to guess what each bar or color represents, especially when values are close in size or cross the zero line.
To draw attention to major changes or summary points, emphasize the starting value, key checkpoints, and the final total. Use bold colors, thicker borders, or distinct fill styles to differentiate these values from regular data points. This helps your audience focus on what matters most in your analysis.
Avoid overcrowding your chart with too many stacked components in each bar. A clean layout with enough white space allows viewers to absorb the information more easily. Limit the number of categories shown at once and use filters or multiple charts if necessary to avoid visual clutter.
It is commonly used to visualize and analyze financial data, such as profit, revenue, expenses, and cash flow. Stacked Waterfall Graphs are also useful for visualizing and analyzing datasets with multiple categories. For example, expenditures by department or revenue by product category.
It makes it easier to track and analyze trends over time. You can also use it to compare multiple data series. This makes it a great tool for comparing different categories. Furthermore, the chart is highly customizable.
To use the stacked waterfall chart Excel template, first open the template and enter your data into the predefined categories and subcategories. The template automatically builds the stacked waterfall based on your inputs.
Customize colors and labels as needed to highlight positive and negative values. Using the stacked waterfall Excel template makes it easy to visualize complex data and track how different components contribute to overall changes.
Now, you have learned how to create this Chart in Excel. It’s a great way to compare the contributions of different values to a total sum.
ChartExpo is a great resource for creating a Stacked Waterfall Chart in Excel. It offers a variety of charts and diagrams to choose from and provides step-by-step instructions for creating the chart.
These charts help you to visualize the cumulative effect of positive and negative values. Creating a Chart is a great way to visualize data intuitively.
In addition, it’s also a great way to identify areas of improvement quickly. For efficiency, ensure the data is in columns and rows, and the chart is easy to interpret.
How much did you enjoy this article?
Improve your analysis with the weighted average on Excel. This guide explains how to apply it for more accurate insights in grading, finance, and performance.
Interpolate in Excel to estimate missing values accurately. This blog shows you how to apply linear interpolation, analyze data, and visualize trends with a chart.
A complete guide on Progress Bar definition, advantages, tools to create it and step by step procedure on how to create a Progress Bar in Excel?
