Donut Chart is just a fancy version of pie chart. Same caveats apply to donut as that of pie. Both good at visualizing part of whole when you have few attributes, comparisons. Here are some helpful links,
Here's how I utilize it, just add some flare to my dashboard and make it relevant with the context. Here I am visualizing sales contribution of different types of food categories over a period of time.
Hope this helps.
Thanks for the details Shiva!
Hi Ruchi, if you found the responses as helpful please feel free to mark them as helpful and correct to close the thread. Let me know if you have further questions.
Donuts are dead, long live the Sunburst - A Template for Creating Sunbursts in Tableau - Ken Flerlage: Analytics Architecture, Strategy, & Visualization
Personally, I use them when you need something to fill the gap between two line or bar graphs and don't want to do more of the same, or use it like a Big *** Number with a fancy background and some punchy text with a key metric.