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 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 ?
Lumber production at our BC mills totalled approximately 74 million board feet during the first quarter of 2019 which represented an annualized operating rate of 54% compared to 69% in the previous quarter and 92% in the first quarter of 2018.
Also, this rig will receive a suspension rate equal to 80% of operating rate during the suspension period.
NNA - Tourism Minister Michel Pharoan on Wednesday said while meeting with Heads of tourism unions that "tourism movement during the Holidays was very acceptable or even good." "Operating ratio in the hotels and restaurants was between 80 and 100 percent, the operating rate in the apartment sector exceeded the 55 to 65 percent, and the movement at the airport registered the arrival/ departure of about 20,000 to 22 000 passengers per day during this period," the minister added.
The South Korean firm produces LCD panels on its own, but it hopes to procure 32-inch TV panels for cheaper cost on the back of the yen's recent depreciation, while the Japanese company is looking to boost the operating rate at its plant in western Japan to improve profitability.
Indonesia has declared the development of new sources of power as a national priority, and plans to focus on developing geothermal power which is notable for its high operating rate compared to other sources of renewable energy.
Vehicle output at the plant in fiscal 2012 to next March is expected to decline significantly from about 330,000 units in fiscal 2011, with its operating rate falling to some 60 percent from about 70 percent.
The operating rate of Japan's 54 commercial nuclear reactors fell to a record low 23.7 percent in fiscal 2011 through March 31 from 67.3 percent in fiscal 2010, with only one reactor in Hokkaido currently in operation, the Japan Atomic Industrial Forum said in a recent report.
However, the report downgraded Saudi Kayan to Neutral from Overweight off the back a downward revision in operating rate assumptions.
It raises the operating rate of firms and lowers me unemployment rate.
The company, servicing the whole Shikoku region, enjoys excellent cost competitiveness and high operating rate of facilities, JCR said.