If you’ve worked with SQL for any meaningful length of time, you’ve probably faced the frustration of reading or writing a massive query. Maybe it had so many subqueries that you got lost in the parentheses. Or maybe it had deeply nested logic that made debugging feel impossible. For business analysts, data engineers, and developers alike, large SQL queries can quickly become overwhelming.
This is exactly where CTEs’ Common Table Expressions come to the rescue.
Think of a CTE as a temporary result set you can reference within your query. It’s like creating a mini, virtual table that simplifies the logic of complex queries and makes your SQL far more readable and maintainable. In short, CTEs are not just a nice-to-have; they’re a game-changer for anyone who works with data.
In this blog post, we’ll explore what CTEs are, why they matter, how they work, and how analysts can use them to solve real-world problems. By the end, you’ll understand why mastering CTEs is one of the most valuable skills you can add to your SQL toolkit.

A Common Table Expression (CTE) is a temporary, named result set defined within the execution scope of a single SQL statement. Unlike permanent tables or views, a CTE only exists for the duration of the query that uses it.
The syntax is simple:
WITH cte_name AS (
SELECT column1, column2
FROM table_name
WHERE condition
)
SELECT *
FROM cte_name;
Here’s what’s happening:
In practice, this means you can break down a complex problem into smaller, understandable parts.

Business analysts are often stuck between two competing realities:
Without CTEs, analysts often resort to subqueries. While subqueries are powerful, they can be difficult to read, debug, and scale. With CTEs, however, analysts can:

Before we dive deeper, let’s examine why CTEs are so important by comparing them to subqueries.
Suppose you want to find the top 5 customers by total spending:
SELECT customer_id, total_spent
FROM (
SELECT customer_id, SUM(amount) AS total_spent
FROM orders
GROUP BY customer_id
) AS sub
ORDER BY total_spent DESC
LIMIT 5;
This works, but imagine if you needed to reuse the same customer spending calculation across multiple queries. You’d have to rewrite it each time, leading to duplication and potential errors.
With a CTE, the logic becomes cleaner:
WITH customer_totals AS (
SELECT customer_id, SUM(amount) AS total_spent
FROM orders
GROUP BY customer_id
)
SELECT customer_id, total_spent
FROM customer_totals
ORDER BY total_spent DESC
LIMIT 5;
Readable. Reusable. Debuggable.

One of the biggest strengths of CTEs is their ability to break down complex problems into sequential steps.
For example, let’s say you’re analyzing employee performance and need to:
Without CTEs, you’d end up nesting queries within queries. With CTEs, the logic flows naturally:
WITH employee_sales AS (
SELECT employee_id, department_id, SUM(sales_amount) AS total_sales
FROM sales
GROUP BY employee_id, department_id
),
department_avg AS (
SELECT department_id, AVG(total_sales) AS avg_sales
FROM employee_sales
GROUP BY department_id
)
SELECT e.employee_id, e.total_sales, d.avg_sales,
(e.total_sales – d.avg_sales) AS variance_from_avg
FROM employee_sales e
JOIN department_avg d ON e.department_id = d.department_id;
This query reads almost like plain English. Each step builds on the last, making it easier to understand and explain to others.

Imagine you want to segment customers into high, medium, and low spenders.
WITH customer_totals AS (
SELECT customer_id, SUM(amount) AS total_spent
FROM orders
GROUP BY customer_id
)
SELECT customer_id,
CASE
WHEN total_spent > 1000 THEN ‘High Spender’
WHEN total_spent BETWEEN 500 AND 1000 THEN ‘Medium Spender’
ELSE ‘Low Spender’
END AS segment
FROM customer_totals;
This helps marketing teams design campaigns tailored to each segment.
Suppose HR wants to analyze employee churn by department.
WITH hires AS (
SELECT department_id, COUNT(*) AS total_hires
FROM employees
WHERE hire_date >= ‘2020-01-01’
GROUP BY department_id
),
terminations AS (
SELECT department_id, COUNT(*) AS total_terminations
FROM employees
WHERE termination_date IS NOT NULL
GROUP BY department_id
)
SELECT h.department_id, h.total_hires, t.total_terminations,
(CAST(t.total_terminations AS FLOAT) / h.total_hires) * 100 AS churn_rate
FROM hires h
JOIN terminations t ON h.department_id = t.department_id;
This gives HR a clear picture of where turnover is highest.
Recursive CTEs allow you to model hierarchies such as managers and subordinates.
WITH RECURSIVE org_chart AS (
SELECT employee_id, manager_id, 1 AS level
FROM employees
WHERE manager_id IS NULL
UNION ALL
SELECT e.employee_id, e.manager_id, oc.level + 1
FROM employees e
INNER JOIN org_chart oc ON e.manager_id = oc.employee_id
)
SELECT *
FROM org_chart;
This makes it possible to visualize reporting structures or bill-of-material relationships.


Many analysts wonder: if CTEs are so useful, how do they differ from views and temporary tables?
CTEs are the best choice when you need one-time simplification of a complex query.


By adopting CTEs into your SQL practice, you’ll notice:
Most importantly, using CTEs elevates you from being a “query writer” to being a true data problem-solver.

At first glance, a CTE might seem like a small feature in SQL. But once you start using it, you’ll realize it’s much more than that; it’s a superpower for simplifying large queries, improving readability, and aligning your SQL logic with the way humans think.
Related Article: Why SQL Skills Are a Superpower for Business Analysts
For business analysts, who often need to explain queries to non-technical stakeholders, CTEs are invaluable. They turn intimidating walls of SQL into step-by-step stories that make sense.
So, the next time you find yourself writing a query that feels too complex, pause and ask: Can I break this down into smaller steps with a CTE? Chances are, the answer is yes, and it will save you hours of frustration.