operating rate

Operating rate

The percentage of total production capacity of a company, industry, or country that is being used.

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operating rate

The portion of capacity at which a business operates. For example, an operating rate of 80% indicates that the business is producing 80% of the output that could be produced at a maximum with existing resources. A low operating rate is generally accompanied by losses or small profits, although the opportunity for profit growth is still great. Conversely, a high operating rate is generally accompanied by high profits but limited opportunity for further profit improvement.