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Data & Analytics · Intermediate

Waterfall Chart

A chart showing how an initial value is increased and decreased by sequential positive and negative contributions to reach a final value.

Definition

Waterfall charts are common for profit bridges, budget-versus-actual variance and cash flow, with increases and decreases colored differently.

Example

Starting revenue + new sales - churn - discounts = ending revenue.

Exam tip

Explaining the bridge from one total to another = waterfall chart.

Related terms