What is the purpose of conditional formatting in analytics?

The purpose of conditional formatting in analytics is to highlight information based on specific rules or criteria. This technique allows users to apply formatting to cells or data points that meet predetermined conditions, making it easier to identify trends, outliers, or areas that require attention. By changing the appearance of data—such as altering background colors, font colors, or styles—conditional formatting enhances data visualization and comprehension.

This visual distinction helps users quickly grasp important insights without manually sifting through large datasets, facilitating a more efficient analytical process. For example, a common use of conditional formatting could be to highlight cells with values above or below a certain threshold, which allows for immediate identification of key points in the data.