What is the purpose of a Waterfall Chart?

A Waterfall Chart is specifically designed to illustrate how an initial value is affected by a series of positive or negative values over time, leading to a final cumulative total. It visually communicates the step-by-step contribution of each value, allowing the viewer to understand how individual components impact an overall result.

This type of chart is particularly effective in representing sequential processes or changes, such as revenue growth, where each bar connects to the next, showing the increase or decrease over a specific period. Consequently, when looking at a Waterfall Chart, one can easily see how different factors cumulatively build up to form the final outcome, which is the essential purpose of this visualization tool.

The other options, while they describe different types of charts or representations, do not capture the unique cumulative nature and sequential impact that a Waterfall Chart is designed to highlight.