Waterfall Chart

1) Waterfall Chart is a sophisticated tool in data visualization that sequentially represents the cumulative effect of sequentially introduced positive or negative values. This chart type is crucial for visualizing the step-by-step progression of an initial value, providing clear insights into the individual contributions of components to a final result. Waterfall Charts are highly beneficial in financial analysis, inventory management, and budgeting, as they help in pinpointing the significant contributing factors to final totals. Utilizing Waterfall Charts in presentations or reports enables stakeholders to grasp complex financial dynamics easily, facilitating more informed decision-making processes. 

2) Application Scenario：Waterfall charts effectively display the quantitative relationship between several specific values, combining absolute and relative measurements to depict the progression of data increases or decreases. They are instrumental in business analysis, offering a visual representation of changes between values. Common applications include evaluating company profits, comparing product returns, analyzing budget variations in projects, and monitoring inventory or sales over time. These charts are valuable for showing how product values fluctuate during a defined period.

3) Basic Requirement：Basic requirements for waterfall charts are shown in the following table.

4) Chart Feature

Advantage: Waterfall charts reveal how two data points change and how data is accumulated.

Disadvantage: Waterfall charts can only be used in some scenarios.

This document demonstrates the quantity changes of various components that make up the salary.

Data Preparation

1. Downloading the Example Data

You can download the example data. Salary Composition.xlsx

The data relationship is as follows: Base Pay + Performance-related Pay + Overtime Pay = Due Pay; Due Pay - Insurance - Provident Fund - Personal Income Tax = Net Pay.

2. Creating an Analysis Subject

Log in to the FineBI system as the admin, click My Analysis, select a folder, and click New Subject.

3. Uploading Data

Click Local Excel and click Upload Data to upload the downloaded example data. 

After the data is uploaded, click OK.

4. Adding a Formula Column

Click Formula Column. Add a function to make the data value 0 for Due Pay and Net Pay, while other data remains unchanged.

Column Name: Cumulative Value Preparation

Formula: IF(Item="Due Pay"||Item="Net Pay", 0, Data)

Note:

The Item and Data fields in the formula are generated by clicking the corresponding fields on the left of the following figure, and you are not advised to directly copy and paste the above formula.

5. Adding a Summary Column

Click Summary Column. Add up the Cumulative Value Preparation field as shown in the following figure.

Column Name: Y Value Preparation

Summary Field: Cumulative Value Preparation

Summary Method: Cumulative Value

6. Adding a Formula Column

Click Formula Column. Add a function to calculate the starting point on the y-axis for each column.

Column Name: Y Value

Formula: IF(Item="Base Pay"||Item="Due Pay"||Item="Net Pay",0,Y Value Preparation-Cumulative Value Preparation)

Note:

 The Item, Y Value Preparation, and Cumulative Value Preparation fields in the formula are generated by clicking the corresponding fields on the left of the following figure, and you are not advised to directly copy and paste the above formula.

7. Saving and Preview

Click Save and Update and click Exit and Preview. The final data is shown in the following figure.

Component Creation

1. Click Component in the lower left corner.

2. Drag the Item field into the dimension bar and the Y Value and Data fields into the indicator bar.

3. Click the Waterfall Chart icon in Chart Type. /

Note:

In the indicator bar, the Y Value field should be placed before the Data field.

4. Click the icon and select Customize Sort for the Item field from the drop-down list.

Component Beautifying

Setting the Label

Drag the Data field into the label bar.

Setting the Color

Drag the Data field into the color bar and set the color based on the value's magnitude.

Removing the Legend

Click Legend in Component Style and deselect Display All Legends.

Note:

For more styles, see Graphic Properties and Chart Component Style.

Effect Display

On PC

On Mobile Terminals

The following figure shows the preview effect on the DataAnalyst app and in HTML5.

In conclusion, Waterfall Charts are a dynamic visualization tool essential for detailed financial and operational analysis. They provide clear insights into the incremental changes that contribute to a final value, making them indispensable in scenarios where understanding the progression of data is critical. By showcasing both positive and negative developments, these charts facilitate a comprehensive review of financial health and operational efficiency, proving invaluable for strategic decision-making and reporting.