operating rate

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Operating rate

The percentage of total production capacity of a company, industry, or country that is being used.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Operating Rate

The percentage of capacity being utilized. For example, if a factory has a 60% operating rate, it is making 60% of the goods it is capable of making with its present equipment. Companies, government and economies all have operating rates.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Our lumber segment operating results were hampered by lower operating rates which resulted in higher unit cash conversion costs at our Fort St.
Koort expects styrene operating rates to decline 6 percentage points through 2022 as Chinese capacity additions outpace his "ambitious" demand growth estimate of 2.3%, he noted.
According to the company, the adjustments are in response to the cost impact associated with the continued low operating rates in the steel market, increasing operational costs and delivery costs associated with specific regional supply and demand imbalances.
"Other upside triggers are related to news on possible value accretive mergers, and further improvement in operating rates and efficiencies.
According to the report, several Middle Eastern producers have experienced unplanned shutdowns or inferior feedstock-conversion rates, resulting in lower operating rates and yields.
The report provides a view of North American supply, including the key metrics of capacity, production and operating rates, in addition to regional trade.
State-owned Abu Dhabi National Oil Co (Adnoc) has restarted a secondary unit at its newly expanded Ruwais refinery and has increased its operating rates to over 80 per cent, industry sources say.
City officials have ordered a number of industries to close or reduce operating rates before and during the event in a bid to reduce air pollution.
Platts reported that global emulsion styrene butadiene rubber prices were resisting a decline in feedstock costs as European and Chinese producers slashed operating rates amid weak demand and a switch to cheap natural rubber.
"We've been making it through all the planned cracker outages just fine and have been fortunate not to have any unplanned outages, so monomer operating rates are already improving."
Unemployment, industrial production activity and factory operating rates (utilization) are improving modestly," said Hal Vandiver, MHIA executive consultant.