Bar graph showing cost components from EBITDA -> Net Income

[ssiao]

Hello!

I am new to this board.
Today I was asked to prepare a bar graph from 2005 to 2012 showing the EBITDA and the other cost components below EBITDA to reach final Net Income. At first I thought it would be easy to prepare, but I now realize that to reach the Net Income, the other cost components must be taken out of EBITDA. So how can I make a bar graph that goes from EBITDA + Other Cost to Net Income?

I have been thinking about this graph most of the day today but could not come up with good solution.
If anyone can help, I would really apprecaite it.

Thank you!

 

[Jon von der Heyden]

Welcome to the board.

I think if I were to show the key components between EBITDA and Net Profit I would probably go for a waterfall chart. Are you just looking at a single period (month/qtr/year)?

See waterfall chart tutorial here.

The "initial" would be EBITDA and the "final" net profit. Not knowing your P&L I would only be able to speculate what items fall below the line, but I presume you have a bunch of GL account codes that apply; and perhaps that you can further categorise.

 

[ssiao]

Thank you for the quick response! I thought about waterfall graph also, but the request was bar graph to show trend across the years (from 2005 to 2012). I am a bit stumped on this request.

 

[Jon von der Heyden]

Is your net profit always positive, or do you have some losses an one or more periods?

 

[Jon von der Heyden]

Typically your EBITDA will always be greater than your Net Profit, unless you've got some strange happenings on the "below-the-line" GL's. So I would use a stacked bar chart where the 1st stack of a bar shows Net Profit. Then each stack on top of that will show the individual "below-the-line" items, finally ending at your EBITDA position. Each bar would represent a different period.

 

[ssiao]

The net profit is always positive; however, some cost components below EBITDA can be positive or negative depending on the year.

 

[ssiao]

Thank you for the suggestions. Just now I tried the stack bar graph; however, it is adding up the EBITDA and "below-the-line" items. The final net income position on the graph is the total of EBITDA + below the line. This graph request may not be possible, so I will see what alternative graphs I can prepare instead. Thank you!

 

[Jon von der Heyden]

You need to start with Net Profit, not EBITDA, and add on from that.

 

[ssiao]

Thanks a lot! I think I finally got it! I was including the EBITDA in the bar graph itself.
When I remove the EBITDA amount, the amounts of Net Profit + Below the Line items = EBITDA.

This will work! Thank you so much!

 

[Jon von der Heyden]

Thanks a lot! I think I finally got it! I was including the EBITDA in the bar graph itself.
When I remove the EBITDA amount, the amounts of Net Profit + Below the Line items = EBITDA.

This will work! Thank you so much!

Bingo Good luck.