Benchmarking Chart
- 03:32
How to create a benchmarking chart in Excel. Covering the process of sorting companies by margins, calculating medians, and adding a median line to a bar chart for visual comparison.
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In this case, we want to create a benchmarking chart and we've got a series of different companies here and we've sorted them in order of their margins and their LTM margins from the very highest margin, company D, the very lowest margin company C. We calculated a median there and then we want to do a median line. So what this means is we'll do a bar chart, a vertical bar chart, and then we'll superimpose an XY scatter chart on top of that, which will give us a median line. The median line will be at a margin of 16% and it's going from one to five because they're five different data units here. So let's insert the chart alt I H, and it's correctly chosen above chart and it says cluster column. We don't really want a cluster column, we actually just want a column chart. Yeah, that's correct. In fact, that's the only chart that we can choose. So I'm just going to choose that, that's fine.
And so I'm make a look on the chart title then type equals, and I'll just pick up the item in there. Next we need to add the median line. So I'm going to right click the chart and choose select data, and then we'll add a series. And the series we're going to call the median line and the series values are going to be the 16%. And then I'll choose, okay. Now when it first does this, it thinks we are adding some more bars. So I'm going to click this series and then right click it and choose change series chart type. And I'll come down and instead of making it a clustered bar, I'm going to choose an XY scatter. But with straight lines. Because we want to connect two points. At the moment it's just doing two points of 16 at 0.1 and 0.2. And I'm going to right click this and choose select data and under median I'm going to choose edit because now Excel recognizes that if this is an xy scatter, I want X values and Y values. Now the X values in this case, the one to five, because you've got five data units across the bottom of the axis and the Y values correctly are the 16%. Then I'll choose okay, and okay again. And again it's given us the median line here. And if we want to put in some data labels, I'm going to go to chart design, a chart element, and then choose data labels. And you can probably just put it above and then I'm going to click that and make sure I include any one of them. Then hit delete. So we just have that 16% there. I guess you could have put a legend in that shows that that's the median, but you can see that's pretty obvious that that's a median there. So this is a great way of creating a benchmarking chart, which has the different companies In order, but it also gives a benchmark. Now if you have a target company, what you could do is if you used to select one of these bars, then you can actually change the fill of that single bar. And currently it's a blue color, it's make it scarlet red there. So that could be a good way of highlighting the case company that you are working on there with a different color. So that's a classic benchmarking chart.