How to Present and Analyze Trends in MS Excel

Microsoft Excel is a very powerful tool when it comes to not only analyzing, but also visualizing data. One of the many tasks it is great for is following and displaying trends. Whether you are keeping track of visits to your site or income for your business, following trends is a very important part of planning future activities.

When analyzing trends, you are better able to predict future trends and various indicators, but also better explain past occurrences.

Here are three great ways to keep track of trends using Excel.

1. Mini line graph

One way is to simply use trend lines in the cell next to the data. It’s a good way to get a quick analysis when putting a report together.

A visual presentation of data can help us understand various trends. The trend line is easy to input, simply click on Insert > Line.

In order to do it right, make sure that you first select the needed data in the first field that you want shown in the line graph. The line will be shown in the second field.

2. Graphs for comparing data

When we want to compare two sets of data, we can then create a graph. Select the data you want presented and then click on Insert > XY charts and select the line version.

You will then see a graph detailing the data trends.

You can use a variety of graphs, but the line graphs is always a good bet since it is a very clear representation of data that is easy to understand and follow.

3. Trendlines

Trendlines can approximate existing data and show them in function form. Right-click on the graph you have created in the last example and select the “Add Trendline” option.

Excel calculates the trendline using mathematical method of least squares. In the trend options you can select whether it’s a linear, exponential, logarithmic or other type of trend.

This is what a trendline looks like. Its look depends on the type of trend you choose and the type of data you are analyzing. For example, if your data varies greatly, you would want to pick an exponential trend.

Select the option for making the trend function parameters visible by clicking on Display equation on chart. You will now be able to see the function parameters, which can be used to predict future values.