As humans, we respond to and process visual data better than anything else. Information presented visually is more absorbent than large quantities of raw data. In business, the graphical representation of data is vital to provide fast and reliable insights for the management.
Two of the most used charts in the financial reports are Variance Charts and Cascade(waterfall) Charts, or the corresponding Sparklines if the analysis is made at a cell level. These robust graphics help the companies to transform their data into accurate, reliable, and clear-cut information, so needed to achieve their success and evolution.
Variance Charts are often used for performance comparison.
In SpreadJS as a building option for this type of analysis is Variance Sparkline. With an instant formula insertion, you can have your data transformed into a visualized information utile for your company.
To Insert a Variance Sparkline in SpreadJS Designer, follow these steps:
Or you can insert the Variance Sparkline by clicking in the desired cell and then entering the VariSparkline Formula.
=VARISPARKLINE(Variance, reference, mini, maxi, mark, tickunit, legend, colorPositive, colorNegative, vertical)
SpreadJS allows you to customize your Variance Sparkline by entering the parameters like tickunit, Sparkline's direction, the position of X or Y axes, color coding, etc.
The purpose of Cascade Sparkline is to show how an initial value (for example, net income) is affected by a series of positive and negative values (expenses or revenues). This Sparkline is used mainly in Time Analysis or Profit and Loss Statements.
As per Variance Sparkline, there are two ways of inserting Cascade Sparklines using SpreadJS products.
=CASCADESPARKLINE(pointsRange, pointIndex, labelsRange, minimum, maximum, colorPositive, colorNegative, vertical, itemTypeRange)
Presented below is an Income Statement that has listed the major categories of assets and expenses for the previous year and the actual one.
Note: the system would accumulate all the table elements since every one of them represents a positive number.
To give a solution for this issue, in SpreadJS add an itemTypeRange parameter, represented here with the highlighted column that would determine if you should:
In the following diagram, you can see a comparison scenario between the Previous Year and Actual. We have created a cascade sparkline for both series and used as itemTypeRange parameter the same range of values.
To make it easier to see the Variance between those two series, there is even a Variance Sparkline providing insights of the absolute deviation of each element.
This visualization shows clearly how the company Revenue is transformed to NET Income Total.
To analyze the company's performance, management often uses the year-over-year (YoY) Variance. This kind of report compares financial statistics to see how they vary from one year against the performance. In the diagram shown before, there were three sparklines that give a simple version of how this analysis can be done for comparing Income Statements of 2 years.
When management teams analyze a company's performance, they often use a type of variance report that compares financial statistics to see how they vary from one year against the performance of another, usually the current year. This type of report, called year-over-year (YoY) variance, is especially useful and insightful when comparing a time series of financial data. Analysts can quickly and clearly see changes in various business aspects with YoY analysis.
By making some adjustments, you can achieve to combine the three sparklines (PY, AC Cascade Sparkline, and the Variance Sparkline). You can show with a Cascade Sparkline the accumulated variance deviation of different elements of the Income Statement between PY and AC.
In the above report, you can see that PY Net Income is $134 M, and Actual Net Income is $214 M. To show how the PY Net ended up to the Actual Net Income, follow these steps:
And, if you want to expand your analysis further, you can create diagrams for each of the categories.
As an example, here is a granulated diagram for Operating Expenses, showing the variance deviation between the Previous Year and Actual Year.
In our data-driven digital age, the decision-makers need their financial dashboards to be equipped with graphs and charts that are accurate and deliver the level of insight required to increase efficiency and stop potential threats. SpreadJS's goal is to make it easier for all the raw data to be transformed, into practical and meaningful information, effortlessly.
If you'd like to learn more about the amazing opportunities, SpreadJS offers, then go ahead and get the free trial.
Download the example file here and follow along.
Note: This is a .ssjson file. Please ensure your browser doesn't change the file extension on download. After downloading, import the file into the SpreadJS designer and discover all the amazing opportunities that SpreadJS offers.
Contact us to learn more at email@example.com and visit the SpreadJS page