Stream graph or stream plot is a variation of area chart that looks like a stream. Here is a quick demo of a stream chart. Learn how to create such a graph in this page.
Background & Inspiration
Stream graphs have been around for many years. But this particular graph, showing the appearance of X-men characters is originally designed by Cédric Scherer. I saw his tweet sometime back and immediately wanted to recreate this in Excel.
So I went to the github project page where Cedric shares his R code, datasets and detail on the construction for all his visuals. I grabbed a copy of the dataset and used it to make the interactive stream graph in Excel.
Big thanks to Cedric for the inspiration. 🙏
Download the Stream Chart Workbook
Please click here to download the Stream Chart: X-Men appearances workbook. Play with it to enjoy. Examine the calculations, worksheet setup and chart formatting options to learn more.
How to make a stream graph - 4 steps
As you can guess, there is no “Stream graph” option in insert ribbon on Excel. So we will need to make it by mixing a few bits and bobs. For the first part of the tutorial, let’s focus on creating a stream plot in Excel. The process involves 4 simple steps.
- Make a regular area chart
- Float the areas with a dummy series at bottom
- Smoothen the areas
- Format the chart
Let’s start with sample data as depicted below.
Step 1 - Make regular area chart
Select the data and insert a stacked area chart. We get this.
Step 2 - Float the areas with dummy series at bottom
To make our area chart look like a stream, we need to first lift the areas. To do this, we need to add a dummy series at the bottom.
But what would the value of this dummy series?
- To make it look like a stream, each point of the area chart needs to move down or up around a center line.
- We can do this by taking a big enough number (say 100) and subtracting half the height of total area at each point.
- To make it look natural, we can add a small random number to this.
Here is how our dummy float series will look:
And this is how our area chart will look once you add the dummy series at the bottom.
Step 3 - Smoothen the areas
You must be thinking… “Hey, where is the stream… 😕?”
We are getting there. Our area chart has all sorts of sharp lines. We just need to smoothen it out. I recommend 60 grit sandpaper.
Just kidding. No need to sand the edges. We just use formulas to smoothen the data. Time for some concepts.
How to smoothen / curvify data in Excel?
If you are making a line graph, you can use the ever helpful “smooth line” option to smoothen it. Unfortunately, we need to use area charts for the stream effect. So we are out of luck and need to learn how to smoothen or curvify our data.
You can use regression to smoothen the data, but it tends to be too complex.
The easy option: use moving average.
Take your data and apply moving average with a window size of 5 (try few different options and pick the one that gives good looking curve).
Here is the moving averaged data. Remember to include the dummy series in moving average calculations.
If you create an area chart from this data, suddenly those areas don’t look so sharp anymore. Our stream is almost ready!!!
Step 4 - Format the chart
This last step is real simple. Just format the chart by making dummy series transparent. Remove any unnecessary chart elements and you have a nice stream going.
Back to X-Men Appearances Stream Chart
Now that you know how to make a stream appear, let me unravel the rest of this beautiful x-men appearances chart.
Data for the visualization:
The data for this came from Github project page (link). It is in a convenient CSV format. I used Power Query to connect to the file and add an extra column to extract mutant character names.
Interactivity – Option buttons:
The interactivity in the stream graph is done with 4 option buttons, icons, text & conditional formatting. See below illustration to understand how they all create the illusion.
Related: How to make your charts & dashboards interactive?
Stream chart edges – lines with smoothing option:
To get the crisp stream effect, I have added two lines, one at bottom and one on top of the stream. I made these lines smooth lines and colored them in white.
Axis labels are data labels on a hidden line:
I added another line series on top. Used that to make axis labels for important issue #s and hidden the line. We get these beauties.
Error bars for gridlines:
As regular gridlines can be too grainy, I removed them and used error bar technique to draw a line from bottom to top of the stream.
Legend is shapes + typed text:
The legend is almost manual. I just created a bunch of rectangles and typed the text in them. I used gradient fill technique to get two colors in the same box.
How did the stream tapered nicely?
That is for you to figure out. Use the download file to learn how that is done.
Stream Chart in Excel - Video
I made a video explaining the whole process. It has many additional charting tips too. Watch it below or on my YouTube channel.
Download Stream Chart Excel File
Just in case, you missed the link above…
Please click here to download the Stream Chart: X-Men appearances workbook. Play with it to enjoy. Examine the calculations, worksheet setup and chart formatting options to learn more.
Advanced Excel Charting Ideas & Inspiration
If you are looking for creative, fun and interesting ways to present data, you’ve come to the right place. Please click on below images to learn more.
Joy Plot in Excel
Another area chart, to make joy plot.
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Want more...?
My Excel School program has tons of advanced charting & data analysis material. Check it out and sign up for more.
15 Responses to “Modeling Interest During Construction (IDC) – Excel Project Finance”
Thanks again for a very helpful post.
I had a similar problem when trying to model a balance sheet and profit and loss projection. The problem was that interest expense (in P&L) was dependent on a cash shortfall (in BS) which had to be funded. The cash shortfall depended on how much interest was paid, so the mutual dependency made a circular reference.
I addressed it with a macro that calculated interest outside of the P&L, then pasted the calculated amount into the P&L as a value. The model was out of balance, but by repeating the pasting and calculating loop the imbalance reduced to zero. It was a bit messy, and had to be repeated every time a line changed - but it worked.
If I have to do it again I'll read this article again first and see if it can be done more elegantly.
Hi,
The use of a circular reference can be avoided in this case. Just make use of the geometric sum to calculate the interest required. I’ll walk through the example from the spreadsheet.
First calculate the cash needed each year without the interest expense. So you year 1 you need 55 Mn, year 2 105 Mn, and 190 Mn for year 3. The total amount to borrow for year 1 is then (50 Mn)/(1-interest_rate) = (50)/(1-0.1). For years 2 and subsequent the amount borrowed is the cash needed in that year plus the interest_rate times the amount already borrowed. For year 2 (105 + interest_rate * sum(previous debt raised))/(1-interest_rate)=(105+0.1*61.1)/(1-0.1).
This process avoids the need for a circular reference, and makes the calculation more stable.
Thanks,
Tristan
The question is for the year 1 in your case, the amount works out to 45 mn. However in the year 2 you have applied the loan amount as 61.1 mn.
Am I missing something ! Please help !
very helpful information!!!
using circular references and to make model more stable we can use combination of "IF" and "ISERROR" functions. i.e
=if(iserror(formula1),"",(formula1))
this formula will return blank value if there is any error otherwise give the result required.
I usually use this in my models and it makes them very stable......
🙂 🙂 🙂
@Terry: Thats right. Exactly same problem is seen in Interest - Cash cycle in P&L and Cash Flow statement as well. In our trainings on financial modeling in excel, we demonstrate using both the circular loops as well as the macros to take care of this problem. Circular loops have their own pitfalls. If the model enters into a state of error, the error percolates!
@Tristan: Thanks for pointing out. I agree with you that if circular loops can be avoided, they should be avoided.
@Yogesh: This is one way of avoiding the problem. Although circular loops have another problem that they make your sheet slower. Each time, there is a change in the sheet, all the calculations are redone. So if they can be avoided, they should be avoided.
Please note that this was an example (a large one indeed) and I didn't have space to speak about the pitfalls of this approach! I just wanted to illustrate an approach and am glad that some of you found it useful!
I think while posting, there is an error in the images! The last image should be flipped with the one that is posted in step VII!
I think you can try the following simple solution given by Microsoft itself to make the circular works:
Windows: Excel Options -> Formulas -> Put a tick on "Enable iterative calculation"
Mac: Excel -> Preference -> Calculation ->Put a tick on "Limit iteration"
You can change the maximum number of calculation iterations as well as the maximum changes which iteration stops for goal seeking or for resolving circular references based on the number you type in the maximum change box.
Thank you.
Hey All
I heard that we can take care of the circularity with the help of macro for IDC. Can anybody help on the steps to construct the macro for the same.
Regards
Vinay
Hi Vinay,
If you look closely, you are essentially copying the values from the interest calculation to the IDC in project cost.
Basically you can record a macro, that takes the values from interest and pastes special the values in IDC row in project cost.
Then you can run that recorded code in a for loop.
Hope this helps.
Thanks Param for reply.
But before calculating interest, i need to provide for Upfront Equity and Equity, which are essentially part of total project cost. Hence, i need to put in Upfront Equity and Equity to calculate the IDC which is again hitting the total project cost.
Bit of confused on how to remove this circular reference.
Regards
Vinay
Wow, this was a brilliantly simple post. I was looking online for a while before I found this page. Never seen this been explained so beautifully yet so crisply before. Thanks for saving my ass at work! (i'm relatively new to finance + modeling)
I'm not sure why but this web site is loading very slow for
me. Is anyone else having this issue or is it a problem on my end?
I'll check back later and see if the problem still exists.
[…] Project Finance Modeling using Excel – Part 1 & Part 2 […]
I have been reading your blog since my college days. Today, I'm writing just to say thanks.
We have calculated Financial Rate of return of a hydropower projects, and the observer has raised an observation regarding Total Project cost with IDC Rs. 8616.01 million (PKR) and with-out IDC 8352.46 million (PKR). How does the Financial nalysis be calculated on the basis of with-out IDC Or With IDC?????
Please helpf. if possible to spare some time.