Discover the step-by-step process of creating a tornado chart in Excel, a powerful tool for sensitivity analysis and data comparison. This guide walks you through the essentials, from setting up your data to fine-tuning chart aesthetics.
After mastering the Excel technique, you'll learn why Sourcetable offers an even more streamlined and user-friendly approach for generating tornado charts.
A Tornado Chart, a distinctive form of Bar Chart, visualizes comparative data through horizontal side-by-side bars. The layout, with bars in decreasing order and the longest bar at the top, resembles a 2D tornado, which is the origin of its name. These charts are also known as butterfly charts and incorporate negative values for creating the visual comparison.
To create a Tornado Chart in Excel, begin by inputting your comparison data into two columns. Ensure the data is organized for a descending order display, with the largest values at the top. Label your categories and values clearly for easy chart interpretation.
Select your data range and insert a Bar Chart from the Excel menu. Choose the 'Bar' option which will provide horizontal bars. Adjust the series to place negative values on one side, creating the tornado effect with bars extending in opposite directions from the axis.
Format the chart by adjusting the bar colors, axis labels, and title for readability. Ensure negative values are clearly indicated. This visual distinction is crucial for the chart's effectiveness in comparison analysis.
Review your Tornado Chart for accuracy in the data representation and make any necessary adjustments. The longest bar should be at the top, and the bars should decrease in length as they descend, maintaining the characteristic tornado shape.
Comparing two data sets side by side to easily spot differences
Visualizing the sensitivity of a result to changes in input variables
Presenting a risk analysis that shows potential upside and downside outcomes
Displaying the results of a pre-post analysis in a before-and-after format
Highlighting the contribution of individual components to a total variance
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