1 of 1 people found this helpful
I can't see from your screen shot but I assume the chart ends at 100%. A Pareto chart using a measure that contains negative values should go over 100% and then at the end come back down to 100%. So roughly talking about the chart shown above if the company had only done business with the top 60% of their customers they would have made (120-100) 20% more in profits than they ended up with because they lost money on the last 40% of customers. The downward section of the profit curve shows the portion of customers that the company made a negative profit from.
not sure I follow up Kent, from the image it shows the curve clearly goes beyond 100%. This curve should max out at 100% then start to turn down (tight?)....
the max $ profit shows 124% of total % of profit. (click image to fully open)
From the chart above, it shows that your profit would be about 20% higher if you didn't sell to the 20% of customers that you were selling to at a negative profit.
Pareto would top out at 100% if you had no negative profit numbers. The running sum is going above 100% because you are making more than 100% profit, until you get to the negative numbers, which is negative profit, which bring you back to 100% profit. If you didn't sort by ascending Customer Name (profit) then you would see it more like a stock market ticker, with highs and lows based on the customer. and that would top to 100%.