Now we know about the financial formulas and financial statements, and we have also learned how to
use formulas and financial analysis and excel.
But when we create financial reports or analyze the financial data, we usually don't only use the numbers,
but we represent data in the form of charts, graphs or any other visual formatting as well.
Doing that is important because charts and graphs allows us to easily identify trends and pattern in
our data.
So.
If you look at this first graph, you can clearly see that the sales are going down.
If you look at this map, you can clearly see that the most users we are getting are coming between
Tuesday and Thursday from 6:00 a.m. to 12:00 p.m..
Feels graphs or charts, it will be much easier for us to communicate insights from our data.
Now, let's take an example to compare numeric data vs. Chuck.
So suppose you own a large clothing store and you want to compare sales of sweaters versus Dowell's.
There is this data of last 12 months since not try to identify the pattern in this data in just five
seconds.
You can see it is somewhat difficult to analyze this 24 numeric data values in just five seconds.
Now, let's look at a graph.
This the line chart.
Again, I'm giving you five seconds to analyze this line chart.
I think the difference between chart and numeric data is not clear to you, you can identify the pattern
in this chart and just two to three seconds.
Now, we know that the charts are important, so in the next couple of lectures, we will see how to
create different types of charts in Excel.
We will look at Collum charts, bar charts, line charts, pie charts, etc..
We are using Excel and not other software such as Tableau, Spotfire or Google Data Studio, because
most people are used to using Excel and Excel is capable of handling some basic data visualization,
which is enough for financial dashboards.
But if you are looking for budgeting tool, I recommend you to look at our Google Data Studio course
where we have discussed data visualization and dashboards in detail and Google data studio.