Each subsequent value (with the exception of the final value - Total Sales) only highlights the difference between the previous value and the current. The chart above starts with the October 1 value (56 sales). The independent variables (dates) are shown on the horizontal axis, while the dependent variables (sales units) are shown on the vertical axis. The first seven values are shown in blue since they represent an increase in sales, as indicated by the legend.

Once you understand that, we’ll graduate to a chart with both negative and positive values. While positive-only values are not typical of waterfall charts, this example is presented to show how the data is represented. In our first example, the source data is a table showing daily sales, so there are only positive values. However, they can also be applied in other settings such as sales, inventory, and education management to track and understand the effects of negative and positive values on cumulative performance. Waterfall charts have been typically used to track important values such as net profit or cash flow over time.

Building a histogram chart excel 2013