capacity utilization rate(redirected from Capacity Utilization Rates)
Capacity utilization rate
The percentage of the economy's total plant and equipment that is currently in production. Usually, a decrease in this percentage signals an economic slowdown, while an increase signals economic expansion.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
capacity utilization ratethe ratio of designed CAPACITY to used capacity.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson