Formula column type is used to perform some kind of computation. You can click on the F button to open the formula pane and then use any formula for function to perform a computation, like find the average or the greatest of three numbers.
For the Above formula based on the rating value of Rating Column, Good or Bad Rating is shown in the Formula column as shown below.
You can use Sort for arranging data in the text column.
You can use conditional formatting to better visualize the entries in each cell.