
Learn how conditional formatting automatically highlights important numbers with colors. Spot low inventory, overdue tasks, and high sales instantly.

When you look at a table with hundreds of rows, your eyes cannot quickly spot which products are almost out of stock or which invoices are past due. Conditional Formatting automatically paints cells with background colors (like soft red, yellow, or green) whenever they meet a rule you create.
Instead of manually highlighting cells with the paint bucket every week, conditional formatting evaluates your data automatically. If stock levels drop below a safe number, the cell turns red instantly!
Every conditional formatting rule is based on a simple comparison test:
| Rule Condition | Example Test | Visual Result |
|---|---|---|
| Less Than Threshold | Stock is less than or equal to 20 | Highlights cell in Red (Action Needed). |
| Above Target Capacity | Occupancy rate is 90% or higher | Highlights cell in Orange (Near Full). |
| Status Text Equals | Cell contains text "REORDER" |
Highlights cell in Red badge. |
Follow these steps to evaluate warehouse replenishment and capacity status:
In cell E2, subtract Current Stock (B2) from Min Threshold (C2) to see how many units you are short.
=C2-B2
In cell E2, calculate the shortage gap by subtracting Current Stock from Threshold. Formula: =C2-B2.
In cell F2, assign "REORDER" if stock is less than or equal to threshold; otherwise assign "OK".
=IF(B2<=C2, "REORDER", "OK")
In cell F2, flag reorder trigger: assign "REORDER" if Current Stock <= Threshold, otherwise "OK". Formula: =IF(B2<=C2, "REORDER", "OK").
In cell G2, divide Current Stock (B2) by Max Capacity (D2).
=B2/D2
In cell G2, calculate warehouse occupancy utilization percentage by dividing Current Stock by Max Capacity. Formula: =B2/D2.
In cell H2, assign "CRITICAL" if occupancy rate is 90% (0.9) or higher; otherwise assign "NORMAL".
=IF(B2/D2>=0.9, "CRITICAL", "NORMAL")
In cell H2, assign capacity status: "CRITICAL" if Occupancy >= 0.9, otherwise "NORMAL". Formula: =IF(B2/D2>=0.9, "CRITICAL", "NORMAL").
Use soft pastel colors (like light red or light green) rather than harsh bright neon colors. Soft fills keep your spreadsheets easy to read during long working hours.
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