Definition
A Panel Chart, or a Panel Graph, in Excel is a multi-faceted graph that displays different variables on a single chart for easy comparison. It is often used in financial analyses when monitoring series of financial data points over a time period. The Panel Chart efficiently visualizes the patterns, variances, and trends in large datasets and allows for a clear comparison between different categories of data.
Key Takeaways
- A Panel Chart in Excel is essentially a group of similar charts that are within a single visual display allowing comparison of data simultaneously across different categories or variables.
- It provides a deep analysis of complex data sets, drawing comparisons between different groups of data available to a far more detailed level than a standard chart.
- Creating a Panel Chart in Excel may require intermediate to advanced Excelling skills. It involves the use of several features such as sorting data, calculating averages, setting up ranges, creating multiple charts, and aligning them together to create an organized, all-encompassing visual representation of your data.
Importance
A Panel Chart, also known as a trellis chart or small multiples, is a series of similar graphs or charts using the same scale and axes, allowing them to be easily compared. This particular method of visualization is essential in the field of finance for various reasons.
First, it allows users to scrutinize, compare, and contrast different data sets side by side in a clearer manner. It reduces the complexity of large data sets, making it much easier to interpret and analyze.
Secondly, through a Panel Chart, Excel enables underlying patterns, correlations, outliers, or trends among data sets to be spotted instantly. Therefore, finance professionals can make more accurate forecasts or informed decisions based on these insights.
Explanation
The purpose of a Panel Chart in Excel is to visualize a complex data set in a simpler, more understandable way. This is particularly useful when dealing with large amounts of data or when comparing multiple data sets.
Panel Charts are specifically designed to provide a display of multiple variables at once, hence offering a more comprehensive view of the data. By organizing datasets into separate panels or plots within the same graphic, these charts are able to communicate trends, comparisons, and patterns that may be difficult to perceive in other forms of data representation.
Panel Charts in Excel are widely used in finance and other fields that rely on the analysis of extensive data. For instance, they can be used to compare the performance of different funds or stocks over a given period, or to analyze the sales performance of various products in different regions.
By providing insights into relationships within and between the datasets, Panel Charts play a significant role in supporting data-driven decision-making processes. Overall, Panel Charts serve to enhance the usability and readability of data, paving the way for more effective and accurate strategies and decisions based on the readily understood information they offer.
Examples of Panel Chart in Excel
Financial Analysis Report: A company might create a panel chart in Excel to compare and analyze the financial performance of different departments or branches over several years. With this panel chart, executives can easily spot trends, patterns, or anomalies in revenues, profits, costs, or other important financial indicators, leading to more informed business decisions.
Budget Tracking: Individuals or families can use a panel chart in Excel to better manage their finances. For instance, they can track their income, expenses, savings, and investments month-by-month in separate panels on the same chart. This way, they can assess their financial health in a comprehensive manner and identify areas where they might need to reduce spending or increase savings.
Stock Market Analysis: An investor might use a panel chart in Excel to compare the performance of several stocks they are interested in or already have in their portfolio. Each panel in the chart may display the stock price trends for one company, enabling the investor to easily contrast and compare these trends. This could assist them in making smarter investment decisions.
FAQ: Panel Chart in Excel
What is a panel chart in Excel?
A panel chart, also known as a trellis display or small multiple, is a series of similar graphs or charts using the same scale and axes, allowing them to be easily compared. It is used for visualizing data that has multiple variables. It’s an advanced Excel technique, which requires either the combination of several chart types or third-party templates.
Why should I use a panel chart in Excel?
Panel charts are particularly helpful when you want to compare the pattern of data across different categories. They simplify the examination of complex multivariate scenarios and help illustrate the bigger picture by grouping related charts together.
How can I create a panel chart in Excel?
Creating a panel chart in Excel involves several steps including organising your data appropriately, creating a basic chart, adjusting that chart to properly reflect your data, and duplicating it for other data series. The specific steps may vary based on the complexity of your data and the version of Excel you are using.
Can I use panel charts with large data sets?
Absolutely! Panel charts excel at representing large data sets in a compact and structured manner. They help visualize complex data correlations and patterns across different categories effectively, even for larger data sets.
What’s the downside of using panel charts?
The main drawback is the complexity in creating them. Excel doesn’t have an inbuilt panel chart option, so you’ll need to have a good understanding of Excel charting to create one from scratch. You may also require to use more advanced features such as dynamic ranges and array formulas.
Related Entrepreneurship Terms
- Secondary Axis: This is an additional axis that allows for more customization of a panel chart, often used to graphically display another category of data which may have a different scale than the primary axis.
- Data Series: A data series in Excel refers to a set of data points that are to be plotted on a chart. Each data series in a panel chart usually represents a unique category or group.
- Scale/Range: This refers to the numerical range that Excel uses to represent the data values on a chart. It can be adjusted to better fit the data and enhance readability of the chart.
- Gridlines: Gridlines are the horizontal and vertical lines that you see on a Excel chart. They help the reader understand the values represented on the chart and their frequency.
- Legend: A legend in a panel chart in Excel is a key or guide that helps users interpret the data series, colors, or symbols used in the chart.
Sources for More Information
- Microsoft: The official website for Excel with helpful blogs and forums discussing different features such as panel charts.
- ExcelJet: They offer many helpful guides about Excel, including panel chart tutorials.
- Excel Campus: A website full of Excel tutorials and resources with in-depth articles about different chart types.
- Excel Dashboard Templates: A site specializing in creating various Excel templates including panel charts.
