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 to
performance analysis. Waterfall charts are also commonly used in
financial analysis 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, etc.) ==References==