The fundamentals of management information – W
War-room solution
Waterfall chart
Columns or bars arranged in levels to portray a sum. The bars or columns begin with the preceding element (i.e. instead of the base line) and are drawn either additive to the right or the top or subtractive to the left or downwards. This makes a very attractive visualization for → column charts, yet results in the usual labeling problems. In addition, when you attempt to bridge two periods, the graphical elements for the summands tend to be too small; → differentiation suffers as a result. DeltaMaster offers an elegant solution. In the case of → gross margin views, normal bars are better to show relative variances because readers can recognize outliers more quickly. The transition from revenues to gross profit is usually trivial.