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[[Image:Waterfall-chart.jpg|thumb|300px|An example of waterfall charts. Here, there are 3 total columns called Main Column1, Middle Column, and End Value. The accumulation of successive two intermediate columns from the first total column (Main Column1) as the initial value results in the 2nd total column (Middle Column), and the rest accumulation results in the last total column (End Value) as the final value.]]

A '''waterfall chart''' is a form of [[Data visualization|data visualization]] that helps in understanding the cumulative effect of sequentially introduced positive or negative values. These intermediate values can either be time based or category based. The waterfall [[Chart|chart]] is also known as a '''flying bricks chart''' or '''Mario chart''' due to the apparent suspension of columns (bricks) in mid-air. Often in [[Finance:Finance|finance]], it will be referred to as a '''bridge'''.

Waterfall charts were popularized by the strategic consulting firm McKinsey & Company in its presentations to clients.<ref>{{cite web| url=http://blog.ideatransplant.com/2008/08/how-to-create-mckinsey-waterfall-chart.html| title=How to Create a McKinsey-style waterfall chart| publisher=Idea transplant| archive-date=2018-08-17| archive-url=https://web.archive.org/web/20180817055946/https://www.slidemagic.com/blog/2008/08/how-to-create-mckinsey-waterfall-chart.html}}</ref><ref>Ethan M. Rasiel. ''The McKinsey Way.''  McGraw–Hill, 1999.</ref>

Complexity can be added to waterfall charts with multiple total columns and values that cross the axis. Increments and decrements that are sufficiently extreme can cause the cumulative total to fall above and below the axis at various points. Intermediate subtotals, depicted with whole columns, can be added to the graph between floating columns. 

==Overview==
The waterfall is known as a bridge or cascade; the chart portrays how an initial value is affected by a series of intermediate positive or negative values. Also, it is similar to Bar Graph.<ref>{{Cite web |last=NetSuite.com |date=2023-06-09 |title=9 Data Storytelling Tips for More Effective Presentations |url=https://www.netsuite.com/portal/resource/articles/data-warehouse/data-storytelling-tips.shtml |access-date=2023-09-28 |website=Oracle NetSuite |language=en}}</ref>

==Applications==
A waterfall chart can be used for [[Philosophy:Analysis|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.

[[Image:waterfallchart ex2.jpg|frame|center|alt=A waterfall chart showing profitability analysis.|Waterfall chart showing profitability analysis]]

Waterfall charts can be used for various types of [[Statistics|quantitative analysis]], ranging from [[Inventory analysis|inventory analysis]] to [[Finance:Performance attribution|performance analysis]].<ref>{{Cite web |date=2020-07-24 |title=Waterfall Chart |url=https://think.design/services/data-visualization-data-design/waterfall-chart/ |access-date=2023-09-28 |website=Think Design |language=en-US}}</ref>

Waterfall charts are also commonly used in [[Finance:Financial analysis|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.

[[Image:waterfallchart ex3.jpeg|frame|center|alt=Inventory analysis using waterfall chart|Inventory analysis using waterfall chart]]There are several sources for automatic creations of Waterfall Charts (PlusX , [[Software:Origin (data analysis software)|Origin]], etc.)

==References==
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[[Category:Charts]]

{{Sourceattribution|Waterfall chart}}