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Capacity utilization or capacity utilisation is the extent to which a firm or nation employs its installed productive capacity (maximum output of a firm or nation). It is the relationship between output that is produced with the installed equipment, and the potential output which could be produced with it, if capacity was fully used.[1] The Formula is the actual output per period all over full capacity per period expressed as a percentage.
- ^ Baumohl, Bernard (2005). The Secrets of Economic Indicators: Hidden Clues to Future Economic Trends and Investment Opportunities. Wharton School Publishing – University of California. pp. 137–140. ISBN 9780131455016. Retrieved 9 January 2023.