(This article was first published on

**mages' blog**, and kindly contributed to R-bloggers)Waterfall charts are sometimes quite helpful to illustrate the various moving parts in financial data, in particular where I have positive and negative values like a profit and loss statement (P&L). However, they can be a bit of a pain to produce in Excel. Not so in R, thanks to the waterfall package by James Howard. In combination with the latticeExtra package it is nearly a one-liner to produce a good looking waterfall chart that mimics the look of The Economist:

Example of a waterfall chart in R |

`library(latticeExtra)`

library(waterfall)

data(rasiel) # Example data of the waterfall package

rasiel

# label value subtotal

# 1 Net Sales 150 EBIT

# 2 Expenses -170 EBIT

# 3 Interest 18 Net Income

# 4 Gains 10 Net Income

# 5 Taxes -2 Net Income

asTheEconomist(

waterfallchart(value~label, data=rasiel,

groups=subtotal, main="P&L")

)

Of course you can create a waterfall chart also with `ggplot2`

, the Learning R blog has a post on this topic.

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