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.
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.