What does a waterfall chart display in Tableau?

A waterfall chart in Tableau effectively visualizes the cumulative effect of positive or negative sequential values. This type of chart is particularly useful for displaying how an initial value is influenced by a series of intermediate positive and negative values, ultimately leading to a final value.

For instance, imagine a budget scenario where initial revenue is increased by sales and decreased by expenses over several months; a waterfall chart would illustrate the starting point, each addition and subtraction, and how those changes accumulate to reflect the ending balance. It allows viewers to easily track how each component contributes to the overall total, making it an essential tool for financial analysis or project tracking.

This visualization emphasizes the flow of data rather than just the final outcome, providing insights into the dynamics behind the numbers. Other types of charts in Tableau, such as scatter plots, might focus on correlations or trends, but they wouldn't effectively capture the sequential effects displayed in a waterfall chart.