Chart Pattern · Reference

Waterfall Chart

Start → +/− changes → end · cumulative bridge

Operating profit bridge — Q1 → Q2

Opening profit, then each contribution stacked, then closing · green = increase, red = decrease, blue = total

✓ When to use

  • Bridging from opening to closing with itemized changes
  • Communicating "why did the number change?" in one chart
  • Decomposing variance against budget or prior period

✗ Avoid when

  • Just showing levels (not changes) — use bar chart
  • More than 12 contribution items — switch to a Pareto
  • Items aren't additive — waterfall implies a sum

★ Best practice

  • Color: green for increases, red for decreases, blue for totals
  • Add connector lines between bars to show the running total
  • Label every bar with its value — this is a numbers chart
  • Sort contributions by magnitude or by intuitive order (revenue first)