Pie charts are best to use when you are trying to compare parts of a whole. They do not show changes over time.

The reason for this being the best answer is that pie charts allow to organize the results from research where there is only one variable being displayed. In this case, all we want to see is the visual data obtained on ice cream flavor preferences and compared. Thus a pie chart allows us to do that.

A common element or description on a pie chart is a percentage. The reason is that percentages are given as a part out of a total (100%). Pie charts are used to see how individual parts compare to the whole, so percents are often times used to show this.

Explanation: A pie chart uses “pie slices” to show relative sizes of data. It forms a circular chart in which each proportion of the “pie” is a percentage of the whole, the total value of them always is 100%. In this type of chart, compared data is easily understanded as it is presented in a simple way.

In short, a pie chart can only be used if the sum of the individual parts add up to a meaningful whole, and is built for visualizing how each part contributes to that whole. Meanwhile, a bar chart can be used for a broader range of data types, not just for breaking down a whole into components.

Bar charts are good for comparisons, while line charts work better for trends. Scatter plot charts are good for relationships and distributions, but pie charts should be used only for simple compositions — never for comparisons or distributions.

Pie charts show how much each category represents as a proportion of the whole, by using a circular format with different-sized “slices” for different percentages of the whole. Bar graphs use a series of rectangular bars to show absolute values or proportions for each of the categories.

Simply put, pie charts are best used to show parts of a whole. Specifically, pie charts should illustrate meaningful relationships between percentages, or parts of 100%. If the data you want to display doesn’t add up to 100%, a pie chart might not be your best choice.

Whenever there is similarity in the information available, a pie chart is not the right chart to use. Whenever there are multiple (3 or more) different points of data, a pie chart is not the right chart to use. Pie charts are very easy to abuse.

A pie chart is a circular graph that is broken down into segments (i.e slices of pie). These segments represent each category’s contribution to display parts of a whole. So if your data does not represent this then you should choose another chart.

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1. Click Insert > Chart.
2. Click Pie and then double-click the pie chart you want.
3. In the spreadsheet that appears, replace the placeholder data with your own information.
4. When you’ve finished, close the spreadsheet.
5. Click the chart and then click the icons next to the chart to add finishing touches:

How to make a pie chart

1. Once your data is formatted, making a pie chart only takes a couple clicks. First, highlight the data you want in the chart:
2. Then click to the Insert tab on the Ribbon. In the Charts group, click Insert Pie or Doughnut Chart:
3. In the resulting menu, click 2D Pie:
4. Once you’ve clicked that, your pie chart will appear!

Pie charts are used in data handling and are circular charts divided up into segments which each represent a value. Pie charts are divided into sections (or ‘slices’) to represent values of different sizes. For example, in this pie chart, the circle represents a whole class.

Step 5: Write Conclusion There is one tip that you may follow for writing the conclusion in pie-chart. You may mention the highest proportion and/or the lowest proportion out of the pie charts to write conclusion.

Click on the first chart and then hold the Ctrl key as you click on each of the other charts to select them all. Click Format > Group > Group. All pie charts are now combined as one figure. They will move and resize as one image.

To calculate the percentage each slice is worth, measure the angle of each slice and divide this by 360 then multiply it by 100. To find the number of pieces of data each slice represents, multiply the percentage that each slice is worth by the total number of the data sets.

Formula to Calculate Percentage The Percentage Formula is given as, Percentage = (Value ⁄ Total Value) × 100.

Multiply by 100 to convert a number from decimal to percent then add a percent sign %.

1. Converting from a decimal to a percentage is done by multiplying the decimal value by 100 and adding %.
2. Example: 0.10 becomes 0.10 x 100 = 10%
3. Example: 0.675 becomes 0.675 x 100 = 67.5%

75%

005 .5%

Multiply by 100 to convert decimal number to percent If you solve this with a calculator then it is easy to get the answer. However, if you solve this by hand or in your head reducing 6/12 = 1/2 may make the problem easier and you may even recognize that 1/2 = 0.50. Multiplying 0.50 by 100 means that 6/12 = 50%.

How much is 3 out of 2 written as a percent value? Convert fraction (ratio) 3 / 2 Answer: 150%

Express 0.9 as a percent

1. Multiply both numerator and denominator by 100. We do this to find an equivalent fraction having 100 as the denominator. 0.9 × 100100.
2. = (0.9 × 100) × 1100 = 90100.
3. Write in percentage notation: 90%

Convert fraction (ratio) 2 / 5 Answer: 40%

Convert fraction (ratio) 2 / 10 Answer: 20%

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Example Values

A pie chart is best used when trying to work out the composition of something. If you have categorical data then using a pie chart would work really well as each slice can represent a different category. A good example of a pie chart can be seen below.

Line graphs are used when smaller changes exist.. Line graphs can also be utilized to compare changes over the same period of time for more than one group. So, a line graph features showing trends, and the best use of a line graph is data that changes over time.

Line graphs are used to track changes over short and long periods of time. When smaller changes exist, line graphs are better to use than bar graphs. Line graphs can also be used to compare changes over the same period of time for more than one group.

Stacked bar charts show multiple values for individual categories, along with the total for all of the categories combined.

Pie charts

Explanation: A line graph can be used to do make comparisons to something measured over time.

The cluster bar chart is often the first chart type to try when showing financial data from a Profit and Loss statement. This chart type allows you to see the relationship between revenue and cost items for a year, but, it is difficult to compare the trends over time.

1. Define the period for your profit and loss statement.
2. Discuss your net sales figure.
3. Provide a breakdown of your costs of goods sold applicable to businesses that sell products.
4. Explain your expenses section, which may make up the majority of your profit and loss statement.

Read this article to learn about the following thirteen users of financial statements, i.e., (1) Shareholders, (2) Debenture Holders, (3) Creditors, (4) Financial Institutions and Commercial Banks, (5) Prospective Investors, (6) Employees and Trade Unions, (7) Important Customers, (8) Tax Authorities, (9) Government …

6 Basic Financial Ratios and What They Reveal

• Working Capital Ratio.
• Quick Ratio.
• Earnings per Share (EPS)
• Price-Earnings (P/E) Ratio.
• Debt-Equity Ratio.
• Return on Equity (ROE)
• The Bottom Line.

One of the leading ratios used by investors for a quick check of profitability is the net profit margin.

Financial Ratios Definitions A ratio takes one number and divides it into another number to determine a decimal that can later be converted to a percentage, if desired. For example, a debt-to-equity ratio looks at the debt liabilities of the company and divides it by the asset equity.

One of the most important profitability metrics is return on equity, which is commonly abbreviated as ROE. Return on equity reveals how much profit a company earned in comparison to the total amount of stockholders’ equity found on its balance sheet.

A good current ratio is between 1.2 to 2, which means that the business has 2 times more current assets than liabilities to covers its debts. A current ratio below 1 means that the company doesn’t have enough liquid assets to cover its short-term liabilities.

The current ratio is an indication of a firm’s liquidity. If the company’s current ratio is too high it may indicate that the company is not efficiently using its current assets or its short-term financing facilities. If current liabilities exceed current assets the current ratio will be less than 1.

The current ratio is a popular metric used across the industry to assess a company’s short-term liquidity with respect to its available assets and pending liabilities. A ratio over 3 may indicate that the company is not using its current assets efficiently or is not managing its working capital properly.

If a company has a high ratio (anywhere above 1) then they are capable of paying their short-term obligations. The higher the ratio, the more capable the company. This indicates poor financial health for a company, but does not necessarily mean they will unable to succeed.

A current ratio of above 1 indicates that the business has enough money in the short term to pay its obligations, while a current ratio below 1 suggests that the company may run into short-term liquidity issues.

When the ratio is at least 1, it means a company’s quick assets are equal to its current liabilities. A ratio of 0.5, on the other hand, would indicate the company has twice as much in current liabilities as quick assets — making it likely that the company will have trouble paying current liabilities.

Generally, an interest coverage ratio of at least two (2) is considered the minimum acceptable amount for a company that has solid, consistent revenues. In contrast, a coverage ratio below one (1) indicates a company cannot meet its current interest payment obligations and, therefore, is not in good financial health.

Also called the times interest earned ratio, this ratio is used by creditors and prospective lenders to assess the risk of lending capital to a firm. A higher coverage ratio is better, although the ideal ratio may vary by industry.

Apple’s Interest coverage ratio, which we calculate as operating income divided by interest paid, has declined from 97x in 2015 to 18x in 2019. Apple’s Total Debt to EBITDA ratio has increased from 0.8x to 1.4x over the same period.

A higher ratio indicates a better financial health as it means that the company is more capable to meeting its interest obligations from operating earnings. On the other hand, a high ICR may suggest a company is “too safe” and is neglecting opportunities to magnify earnings through leverage.

The debt to assets ratio formula is calculated by dividing total liabilities by total assets. As you can see, this equation is quite simple. It calculates total debt as a percentage of total assets.

Divide your interest rate by the number of payments you’ll make in the year (interest rates are expressed annually). So, for example, if you’re making monthly payments, divide by 12. 2. Multiply it by the balance of your loan, which for the first payment, will be your whole principal amount.