CAPACITY UTILIZATION RATE

A metric used to compute the rate at which possible output points are being reached or used. Shown as a percentage, capacity utilization levels give idea into the total slack that is in the economy or a company at a given schedule. If a firm is managing at a 70% capacity utilization rate, it has space to raise production up to a 100% utilization rate without altering the high-priced costs of constructing a new facility or plant.