Waterfall charts are Categorical charts which display the cumulative effect of sequentially introduced positive or negative values.
The following example demonstrates the Waterfall chart in action.
A horizontal Waterfall chart type shows the cumulative effect of positive or negative values on the starting point. You can use it to provide a better understanding of how an initial amount is influenced by subsequently added positive or negative values. A horizontal Waterfall chart is useful for different types of quantitative analysis related to inventory, cash flows, performance, etc. This chart type looks like a Range Bar chart where the low or high value of a subsequent item is connected to the preceding one with a thin line.