A sankey chart is a type of diagram that visually represents a flow of data, showing how one data point flows through or is sourced from its origins, and how this process changes as information changes over time. It offers a unique way of visualizing the relationships between different data points and can be used in a variety of applications, from education and research to business and finance.
In this article, we will explore the basics of sankey chart creation and applications. We will also take a look at some examples of how sankey charts can be used in the business and finance industry.
Creating a sankey chart involves several steps. First, you need to identify the data that you want to analyze and determine the flow of data. This flow might include data flows, data processes, or data outputs. Once you have identified your data sources and flow lines, you’ll need to create the chart. This can be done using a variety of software, but most people are familiar with Microsoft Excel and Google Sheets, two popular spreadsheet software options.
Here’s how to create a sankey chart in Excel:
- Open a new Excel document and insert a new chart.
- Choose the “Sankey Chart” option from the chart selection menu.
- Fill in the flow lines: Start by drawing a line segment for each source, representing the origin of the flow. Next, you need to draw arrows to show the direction of the flow from the source to the destination. Finally, draw segments to show the destination, along with arrows pointing back to the source. You’ll also want to add labels to show each segment’s information.
- Add titles and customization options: Label each segment with its source/destinations, and add any customizing options to make them more comprehensible.
Now, let’s explore some applications of sankey charts in the business and finance industry.
One use case for sankey charts is in supply chain management. Supply chain managers can use sankey charts to visualize the flow of goods from suppliers to customers. For example, they can use sankey charts to show how raw materials are sourced and processed to produce finished goods, and how these goods are sold to customers.
Sankey charts can also be used to visualize data flows within a company, helping managers to understand how different departments are influenced by each other. For example, they can use sankey charts to show how project costs are allocated between various departments, or how marketing budgets are used to support product development.
Sankey charts can also be used to visualize data inputs and outputs within a business. By creating sankey charts, managers can see how different inputs (such as customer demand or production data) flow through a business, and how these outputs (such as product orders or revenue streams) are affected by inputs.
In addition, sankey charts can be used in financial analysis to visualize the flow of investments and revenues. For example, analysts can use sankey charts to track the growth of the company portfolio, and visualize changes in the company’s cash flows.
In conclusion, sankey charts are a powerful tool in visualizing complex data flows, offering managers and analysts a unique way of understanding the relationships between different data points and flows. By using sankey charts in a variety of applications, businesses and industries can gain deeper insights and take informed decisions.
Here are some additional resources that can help deepen your understanding of sankey charts, including:
- A tutorial on creating sankey charts in Microsoft Excel. https://www.novapositive.com/blogs/create-a-sankey-chart-in-microsoft-excel/
- A tutorial on creating sankey charts in Google Sheets. https://www.themoviereel.com/2018/09/02/create-sankey-charts-with-google-sheets/
I hope this article provided you with a thorough understanding of sankey charts and their applications in the business and finance industry. Please feel free to ask any questions and stay tuned for more articles on various data visualizations.
SankeyMaster
SankeyMaster is your go-to tool for creating complex Sankey charts . Easily enter data and create Sankey charts that accurately reveal intricate data relationships.
