Using Sankey Charts to Transform Investor Presentations

The Investor Presentation Problem

Every quarter, companies present financial results to analysts and investors. The typical format: slides packed with tables, bullet points, and dense text. Presenters read from scripts while the audience scans ahead, trying to extract meaning from rows of numbers.

It's not a great experience for either side.

Investors want to understand performance quickly. Presenters want to tell a coherent story. Tables serve neither goal particularly well.

Why Flow Visualization Works Better

Human brains process visual patterns faster than numerical data. We evolved to see shapes, proportions, and movement—not to scan tables.

Sankey diagrams leverage this biological reality:

Immediate Pattern Recognition

A Sankey diagram of an income statement shows revenue flowing down through costs to profit. The shape tells a story before anyone reads a single number. Is this a high-margin business? A capital-intensive one? The answer is visible in the flow width.

Proportional Reasoning

When presenting, you might say "operating expenses were $10 billion." But is that a lot? Relative to what? In a Sankey, that expense appears as a flow whose width is proportional to revenue. The audience instantly understands whether $10 billion is 10% of revenue or 40%.

Narrative Support

Good presentations tell stories. A Sankey diagram provides visual structure for that story: "Revenue enters here, costs are incurred here, and what remains flows to the bottom line." The visual reinforces the narrative.

Practical Implementation

For Quarterly Earnings

Replace the traditional income statement table with a Sankey visualization. Keep the table as backup (or in the appendix), but lead with the visual. Walk the audience through the flow:

"Starting with $50 billion in revenue, we see approximately $20 billion flowing to cost of goods sold, leaving $30 billion in gross profit. Operating expenses of $10 billion then lead to operating income of $20 billion..."

The audience follows along visually, making the numbers tangible.

For Annual Reports

Annual reports can include interactive Sankey diagrams in digital versions. Readers explore the flow, clicking to see detail. Print versions can use static but well-designed flow diagrams that communicate the year's financial story.

For Board Meetings

Board members oversee multiple companies and initiatives. Their time is limited. A Sankey diagram summarizes financial performance faster than any table, allowing discussions to focus on strategic implications rather than arithmetic.

What to Include in Financial Sankey Diagrams

The most effective financial Sankey diagrams include:

1. **Revenue sources**: Product vs. service, geographic segments, business units
2. **Cost structure**: COGS, R&D, SG&A, other operating costs
3. **Profit flows**: Gross profit, operating income, net income
4. **Key allocations**: How profits flow to taxes, interest, and retained earnings

Keep it readable. Too many nodes make the diagram confusing. Focus on the major flows that matter for your story.

Common Objections (and Responses)

**"Our investors are sophisticated—they prefer tables."**

Sophisticated investors also value their time. A Sankey diagram helps them understand your business faster. The detail remains available for those who want it.

**"Sankey diagrams look unusual. They might confuse people."**

The first time someone sees one, perhaps. By the third slide or the second quarter, the format becomes intuitive. The benefits compound over time.

**"It's hard to create Sankey diagrams from our financial data."**

This was true until recently. Tools like Sankify now generate these visualizations directly from financial filings, eliminating the design burden.

The Communication Advantage

Ultimately, investor presentations are about communication. Tables communicate data. Sankey diagrams communicate understanding. In a world of information overload, that understanding is increasingly valuable.