Thermometer Chart in Excel

Definition

A Thermometer chart in Excel is a type of chart used to visually represent the percentage of a task completed. It resembles a thermometer, with the vertical bar indicating progress towards a goal. It’s often used in financial and business contexts, such as tracking sales, budget utilization, or progress towards fundraising goals.

Key Takeaways

1. A Thermometer Chart in Excel is a type of chart used in financial planning that visually displays actual vs target data much like a thermometer. The actual value is represented by the filled part within the thermometer, whereas the target value is indicated by the full length of the thermometer.
2. Creating a Thermometer Chart in Excel involves using a combination of a column chart and added formatting to make it appear like a thermometer. The setup is straightforward; you need to input the actual and target values, select the relevant data, create a basic chart, then alter specific properties to achieve the desired thermometer shape.
3. The Thermometer Chart provides a clear and easy-to-understand visual representation of progress toward a goal. This makes it a powerful tool in finance and business for tracking progress towards goals such as sales targets or budget spending controls. It is beneficial for communicating updates and results in a visually compelling and easily digestible format.

Importance

A Thermometer Chart in Excel is important in finance because it offers an impressive visualization tool that effectively illustrates a single point of data, such as percentage completion towards a particular goal, often in real time.

Whether that goal is a sales target, debt repayment, or fund raising objective, the chart provides a clear, easy-to-understand visual representation.

The visualization shows the target amount as a whole, while the current progress is depicted as a rising fill within that total amount, very similar to a thermometer.

By using this chart, financial analysts, managers, and stakeholders can get an immediate grasp of performance status, enabling prompt actions and decisions when necessary, thus contributing to efficient financial management and planning.

Explanation

The Thermometer Chart in Excel is a beneficial tool commonly used in financial planning and analysis, primarily for visually representing a single value comparison against a predefined target or goal. Typically, it is utilized to display the percentage of a goal achieved, like a fundraising goal or sales target, embedding a clear visual indicator on performance level.

The design of the chart mirrors an upright thermometer, where the broader column illustrates the varying “temperature” or performance that fills up as it gets closer to the pre-set objective. The purpose of a Thermometer Chart in Excel is to provide an immediate, visually impactful snapshot of progress towards a specific goal, which aids in monitoring and managing performance proactively.

By so doing, it can aid in modifying strategies or actions to ensure objectives are met. Thus, it’s a favorite tool in sales, marketing, finance and project management, where reaching defined targets is key to success.

Watching the percentage of the goal accomplished gradually fill the ‘thermometer’ can also act as a motivational tool, creating a sense of achievement as one gets closer to hitting the goal.

Examples of Thermometer Chart in Excel

Sales Performance Tracking: In the world of sales, a thermometer chart in Excel can be used to visually track and display sales performance against set goals. For instance, the base of the thermometer could represent zero sales, and the top could represent the sales goal for a specific period. As sales transactions are recorded, the thermometer fills up, visually indicating progress toward, or achievement of the goal.

Fundraising Campaigns: Nonprofit organizations often use thermometer charts during fundraising campaigns. The base of the thermometer represents zero donations, the top is the target donation amount, and the current donation amount fills up the thermometer. It provides a visual representation of how much has been raised compared to the target and is a great way to motivate donors to contribute more.

Project Completion Tracking: Project managers might use a thermometer chart in Excel to show the progression of a project. The base of the thermometer can represent the start of the project, while the top can represent project completion. Different stages of the project can be filled up in the thermometer as they are completed, making it clear to the team how much work is left to do.

Frequently Asked Questions about Thermometer Chart in Excel

What is a Thermometer Chart in Excel?

A Thermometer Chart is a type of chart in Excel that visually represents the percentage of a task completed in the form of rising temperature. It is used to show the progress of a specific target or goal in a data performance.

How do you create a Thermometer Chart in Excel?

To create a Thermometer Chart in Excel, you first need to create a simple column chart from your data. Then, on the chart, double-click the vertical axis. Change the Maximum Bound to match the target value. Adjust the fill and border of the chart to give it the appearance of a thermometer.

When should you use a Thermometer Chart?

A Thermometer Chart is best used when you have a single-point target to achieve and you want to represent the progress of achieving this goal in a graphical format. It is commonly used in business presentations or dashboards.

Can you customize the Thermometer Chart in Excel?

Yes, Excel allows you to customize the Thermometer Chart by changing its color, adjusting the scale, adding data labels and more. You can make these customizations by clicking on the chart and using the tools located in the Chart Tools tab in the ribbon.

Can you create a multi-color Thermometer Chart in Excel?

Excel does not directly support creating a multi-color thermometer chart. However, with some additional steps and modifications, it’s possible to manually create a chart that resembles a multi-color thermometer chart.

Related Entrepreneurship Terms

• Data Visualization
• Excel Spreadsheet

Progress Tracking

• Goal Setting
• Fundraising Analysis

Sources for More Information

• Excel Easy: A great site for Excel tutorials, including graphics like Thermometer Charts.
• Excel Tip: Another useful site with a range of excel tips and tricks, including Thermometer Charts.
• Contextures: Offers resources and tutorials on Excel, including how to create Thermometer Charts.
• Extend Office: A site that provides solutions for Microsoft Office, including creation of Thermometer Charts in Excel.