Definition
A Gauge Chart, also known as a Speedometer Chart, in Excel is a visual tool used to display data in the form of a speedometer-like gauge. It often includes a single needle to show data points on a dial, which could represent a range from a minimum to maximum value. This chart type is mainly used for executive dashboards as it provides a quick and easy-to-read visual summary of information.
Key Takeaways
- A Gauge Chart, also known as a Speedometer chart, is a compelling visualization tool in Excel. It typically resembles a speedometer and is used to display performance measurements.
- The Gauge Chart in Excel combines a doughnut chart and a pie chart into a single product display. This is notably beneficial when you want to display a specific KPI measurement (such as sales performance or customer satisfaction) in a visually engaging way.
- Creating a Gauge Chart in Excel requires some complex steps involving various Excel features and formulas; however, once made, it can be very user-friendly and easy to update with new data. It’s an effective, visual way to illustrate progress towards a goal or key performance indicator.
Importance
The Gauge Chart in Excel, also known as the Speedometer Chart, is an important tool because it provides a visual representation of data in a way that is easy to understand and interpret.
This type of chart is particularly useful in finance because it makes it straightforward to track the progress of a single point of data, such as a financial target or goal, over a given period.
With its speedometer-like appearance, a Gauge Chart clearly illustrates how close or far we are to reaching a particular financial target, thereby enabling stakeholders to monitor performance and make data-driven decisions more effectively.
Therefore, it plays a fundamental role in the presentation, analysis, and interpretation of financial data.
Explanation
The Gauge Chart in Excel, often referred to as a speedometer chart, is a visual tool primarily used to display performance measures. It is used to illustrate where a particular number falls on a spectrum – often used to represent a key performance indicator (KPI) or performance metric. This chart can help translate numerical data into visual cues, much like a speedometer in a car, enabling an easier understanding of the data at hand.
One of its key strengths is its ability to exhibit the difference between the actual value and the target value, thereby providing a multi-level performance summary in a concise manner. Excel’s Gauge chart is widely used in fields like finance, sales, HR, and quality control, among others for its efficient representation of data. For instance, finance professionals might use it to track the progress of sales revenues against targets for a given period.
Similarly, HR professionals may use it to visualize employee performance or progress towards training completion. In essence, the gauge chart serves the function of monitoring, measuring, and managing the progress of specific metrics. It is an effective way of communicating the company’s progress towards its various objectives in a visually compelling way.
Examples of Gauge Chart in Excel (Speedometer)
Monitoring Sales Performance: A business may use a Speedometer Chart or Gauge Chart in Excel to display it’s actual sales performance against a set target. The needle of the speedometer can indicate the level of sales achieved, with the different zones of the chart indicating levels of performance (below target, meet target, and above target).
Budget Tracking: An organisation could use a Gauge Chart in Excel to track their spending against their budget. The budget amount can be set as the maximum value on the gauge, and the actual spending can be represented by the needle. If the needle moves towards the red zone, this signifies that spending is dangerously close to or has exceeded the budget, thus enabling quick decisions.
Project Progress Tracking: Project managers can use a Gauge Chart in Excel to track progress against the projected timeline. For instance, if a project is anticipated to be completed in 12 months, each month can be tracked on the gauge chart to determine if the project is on schedule, ahead or behind. The “red” zone can indicate a delay, “yellow” can indicate the project is on time, and “green” could indicate that the project is ahead of schedule.
FAQ Section: Gauge Chart in Excel (Speedometer)
1. What is a Gauge Chart in Excel?
A Gauge Chart (also known as a Speedometer chart) is a combination of Doughnut chart and Pie chart in Excel. It helps to visually display the percentage of a value or proportional data. This is often used in KPI dashboards to show how closely a value is to a predetermined standard or goal.
2. How do I create a Gauge Chart in Excel?
To create a Gauge Chart in Excel, start with a set of values in Excel. Insert a doughnut chart and then modify it into a Gauge Chart by adjusting the start and end angles of the chart. The data point would be displayed as a proportion of 360 degrees on the chart.
3. Can I customize the Gauge Chart in Excel?
Yes, you can customize a Gauge Chart in Excel. You can change the color and size of the pointer, adjust the range of data displayed, adjust the labels, add a title, and more. Overall, you can personalize the Gauge Chart as per your needs.
4. Why isn’t the Gauge Chart option showing in my Excel?
Excel does not have a pre-defined Gauge or a Speedometer chart type in its list of charts. However, you can create your own Gauge Chart by using a combination of Doughnut and Pie charts and applying some Excel techniques to modify the appearance to resemble a Gauge Chart.
5. Are Gauge Charts in Excel effective?
Gauge Charts can be effective for displaying data and making comparisons quickly apparent. However, they are sometimes criticized for being less accurate than other charts. Gauge Charts should be used appropriately, depending on the data you want to present, your audience, and the context in which the chart will be interpreted.
Related Entrepreneurship Terms
- Data Series: This refers to a row or column of numbers that are plotted in a chart. In the context of a gauge chart, it can be the set of data that is represented on the gauge.
- Dashboard: In Excel, this is a platform that displays multiple visualizations, tables, and charts, including gauge charts, to represent various aspects of data’s story. It can be updated, manipulated, and interacted with.
- Pivot Table: A technique in data processing. Pivot tables can be used to summarize, sort, reorganize, group, count, total or average data stored in a database. It can be used in conjunction with Gauge Charts for data analysis.
- Conditional Formatting: This is a feature in Excel that allows cells to be formatted based on conditions that you set. In a gauge chart, conditional formatting can be used to highlight certain data points.
- Chart Wizard: A tool within Excel that guides users through the process of creating a chart, like a Gauge Chart. It may include selection of chart type, source data, and formats.
Sources for More Information
- Microsoft Office Support: Offers detailed guides on creating and managing Gauge Charts in Excel.
- Excel Easy: Provides comprehensive tutorials on different features of Excel, including Gauge Charts.
- Excel Campus: A site dedicated to Excel tutorials and resources, offering an extensive section on Gauge Charts.
- Trump Excel: Features educational resources on Excel, with a focus on charts, including Gauge Charts.
