The Sankey chart is probably the most impressive visualization. It might seem like only a skilled designer could create something like this, and this level of creativity cannot be templated! Nevertheless, even such a chart can be constructed in just a few clicks if you have the data prepared in the correct format (indeed, this is the most subtle and challenging part).
While some may misinterpret it as “sun key” in the name, it has no relation to sun rays or keys. It is actually named after the 19th-century Irish engineer, Matthew Sankey, who utilized this method to illustrate the functioning of a flow engine. In the 21st century, it is being employed to showcase how money works.
The Sankey chart in Figure 17-1 provides a clear and accessible explanation of financial operations, especially for managers who are not familiar with them. We can see that the company’s revenue is composed of three main flows: the majority comes from the sale of goods, around 30% from services provided, and a smaller (insignificant) portion from other sources of income. Subsequently, these funds are allocated to two budgets: operational (Opex) and capital (Capex). Moreover, you can see how expenses are distributed within these budgets and, most notably, where they intersect. For example, the salary mainly belongs to Capex, but a portion of it is also included in Opex.
Figure 17-1. Profit and loss (P&L) statement shown ...
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