Waterfall charts are often used to visualize data that flows through a series of stages. The waterfall chart is also known as a cascading chart or a flying bricks chart. Waterfall charts are often used to display the cumulative effect of sequentially introduced positive or negative values.
The chart begins with the initial value at the top of the chart, and each subsequent value flows downward. This is typically used to track the flow of money or the progress of a project. They are named “waterfall” because the image that the chart resembles is of a waterfall, with water flowing over successive levels.
The waterfall chart is an excellent way to visualize the data in a data table to make more informed business decisions, but there are some disadvantages to using waterfall charts. Today, we’ll cover these disadvantages of waterfall charts.
The waterfall chart is not always easy to understand
A waterfall chart is not always easy to understand, especially when multiple data sources are involved. This means you may have to take a little more time to understand how the data is visualized. In some cases, you may even need to ask the person who created the waterfall chart for more information. Otherwise, you might not be able to glean all the available information from the chart.
When looking at a waterfall chart, one thing to remember is that the numbers represent the cumulative total. This means that the numbers at the bottom of the chart are the most important, representing the final value. The numbers at the top of the chart are less important, as they are only relevant to the individual data points.
Waterfall charts can be difficult to create
The next disadvantage is that a waterfall chart can be difficult to create, especially with many data points. To explain, imagine trying to create a waterfall chart that shows the sales data over the past year. In order to create a waterfall chart that is accurate and easy to read, you would need to include a band for each month and then calculate and display the change in value for each band.
This can be a time-consuming process, and it can be difficult to accurately calculate the change in value for each band if the data is not already in a table format.

Waterfall charts are not exceptionally versatile
Another disadvantage is that waterfall charts are not especially versatile. They can only be used to visualize data that flows through a series of stages. You can use a waterfall chart to track the progress of a project or the sales process for a product.
But you can’t use a waterfall chart to track cyclical data or that changes over time. For example, you can’t use a waterfall chart to track the number of sales leads you receive each day. Unfortunately, waterfall charts are not always the best option for visualizing your data.
A waterfall chart frequently has unclear dependencies
The next disadvantage is that it can be unclear what the dependencies are between tasks on a waterfall chart. Therefore, it can be difficult to determine which tasks need to be completed first to keep the project on track. For example, if task A depends on task B and task B is delayed, task A will also be delayed.
However, the waterfall chart will not show this information. As a result, it can cause delays in the entire project and frustration among team members. For this reason, these charts are best used in tandem with other graphs.
Make the most of waterfall charts
By taking the time to understand a waterfall chart, you can gain a better understanding of the data that is being visualized. This can be especially helpful when you are trying to make a decision or when you need to explain the data to someone else. Though they have some disadvantages, they’re a useful analytical tool for any business.