In today’s data-driven world, effective visualization techniques can mean the difference between insightful decision-making and mistaken analysis.
Amidst this sea of data, donut charts offer a visually engaging and intuitive way to decode complex datasets. Recognizing their potential applications and the best times to use them can go a long way in your presentations, reports, or whitepapers
In this article, we dive into the fundamentals of donut charts, including their uses, practicality, and the times when they stand out over other chart types.
Table of Contents
Getting to Know the Basics of Doughnut Charts
So, what is a donut chart? A donut chart is a type of pie chart where the center has been removed to create a hollow or ‘donut’ look. The main purpose of this design remains the same as that of the traditional pie chart— displaying the statistical distribution of data into segments.
Each segment of the donut represents a portion of the whole, and the entire donut itself represents the total sum of all the data, expressed as 100%.
Although donut charts can be easily confused with pie charts, a closer examination reveals key distinguishing features. The hole in the middle of a donut chart allows for an area to display further information, like a total sum or an additional percentage calculation.
Additionally, donut charts are often considered aesthetically appealing and less cluttered compared to traditional pie charts, especially when representing multiple categories.
Usage of Donut Charts in Various Industries
In business landscapes, donut charts can be versatile data visualization tools, finding their place in a variety of contexts. Among a plethora of uses, they shine in the representation of sales figures, market share computations, or budget allocations in different departments or projects.
In the healthcare industry, donut charts assist in clearly depicting patient demographics, disease prevalence, and other statistical data, where the percentage distribution is essential. Marketing teams often utilize donut charts to show campaign results, customer segmentation, and ad expenditure.
They also find purpose in research and policy-making, with organizations using donut charts to illustrate population segments, economic indicators, or social issues. They’re very effective when quantifying and comparing entities in a succinct and compelling manner.
Effective Application of a Donut Chart
Consider a retailer looking to analyze its sales distribution across different product categories. In this instance, a donut chart can vividly illustrate the revenue share of each category, enabling a straightforward identification of big sellers and underperforming groups.
The numerical data is transformed into an intuitive visual that communicates volumes with a simple glance. Decisions like inventory management and marketing strategy will result from this clear understanding of the sales figures across categories.
If the retailer extends the scenario to compare sales across multiple stores, additional donut charts can illuminate region-specific preferences and success stories. Comparing multiple donut charts can depict patterns and correlations that are otherwise hidden.
While a bar graph or a pie chart could also serve similar purposes, the aesthetic presentation of a donut chart offers an intrinsically engaging path to data comprehension.
When to Use a Donut Chart
Determining when to use a donut chart largely depends on the nature and quantity of your data. They’re most effective with few categories. Too many slices and the visual appeal is diminished, as is the recognizability of item proportions.
If your aim is to demonstrate a contrast between different categories or highlight a significant category, a donut chart serves the purpose well. It creates an impactful emphasis on a particular segment when put in perspective with the whole.
Should your information fit the bill but carry a noteworthy ‘zero value’ category, you might want to avoid a donut chart. Due to the circular design, a zero proportion is rendered invisible, inaccurately depicting the dataset.
Finally, donut charts are a great choice when you’d like to add a modern and captivating touch to your data presentation without losing out on simplicity or functionality.
Conclusion
Altogether, the donut chart is a visually appealing, straightforward tool for displaying proportional datasets. When used correctly, it can significantly enhance the readability of your data and facilitate quicker, more informed decision-making. Expand your data visualization skills by understanding and utilizing donut charts effectively.
FAQs
What is a donut chart used for?
A donut chart is used to display the proportions of different data points that total 100%. It’s best used to compare a few categories and how they relate to the whole. The center of the donut chart can also be used to display additional data.
What is difference between pie chart and donut chart?
While both pie and donut charts are used to show proportions of a whole, a donut chart is essentially a pie chart with the center cut out. This allows for an additional data point to be displayed in the center.
Also, donut charts are typically used for fewer categories (2 to 5) compared to pie charts.
What is the principle of donut chart?
The principle of a donut chart is to represent categories of data as arcs in a circle, with the length of each arc representing the proportion of each category. The total of either the count or the specified field is displayed in the center of the donut chart.
Are donut charts as bad as pie charts?
The effectiveness of donut charts, like pie charts, depends on their use. They can be harder to read than other chart types, especially when the arcs are similar in size.
However, they can be excellent for displaying a few categories of data and can use the center space to highlight an important statistic or data point. Misuse of these charts can lead to confusion, but when used appropriately, they can provide valuable insights.
