capacity utilization


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Capacity Utilization Rate

The extent to which a company uses its facilities at capacity, expressed as a percentage. That is, the capacity utilization rate states how much a company produces as a percentage of what it can produce. For example, if a factory produces 1,000 widgets per day but could produce 2,000 for the same cost, it has a capacity utilization rate of 50%. The capacity utilization rate is most useful for companies producing goods rather than services because goods are simply easier to quantify.

capacity utilization

the proportion of a firm's available CAPACITY which is currently being employed in producing output. This depends to a great extent on the state of demand and a firm's competitive abilities. A fall in demand, or a failure to win orders against competition, may force a firm to operate at below BREAK-EVEN levels of capacity utilization. See INDIVISIBILITIES, BUSINESS CYCLE, MACHINE UTILIZATION.
References in periodicals archive ?
The positive development of the capacity utilization is also reflected in the figures for the accumulated period from January up to and including November 2015.
The Central Bank Tendencies of the Manufacturing Industry Survey calculates the capacity utilization rate -- the percentage of a company's production capacity that is actually used over a particular period of time -- based on the provisional results of 2,227 manufacturers.
The upcoming discounts apply to 40 nm and 60 nm technologies, both for 12-inch wafers and accounting for 54% of TSMC's revenue, with the move to boost order placement by clients to enhance capacity utilization and consolidate gross margin.
This report is a broad overview of capacity utilization on major U.
As the number and size of applications grow, effective disk capacity utilization tends to drop.
Recently, overall capacity utilization by biopharmaceutical developers and contract manufacturers has declined.
When capacity utilization is high, the investment rate tends to pick up; low levels of capacity utilization are associated with a slowdown in the investment rate.
Capacity utilization was up in intermediate goods by 0.
The rate of capacity utilization for the durable-goods-manufacturing industries continued its steady rise during June, hitting 80.
airberlin: More passengers and increased capacity utilization 07.
The firm's capacity utilization in the third quarter will be lowered to 80%, compared to 82% to 83% in the second quarter.
ANKARA, Feb 21, 2011 (TUR) -- Turkey's capacity utilization rate in manufacturing industry rose 5.