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Concept7 min read
Capacity Utilization
Capacity utilization is the share of maximum sustainable output that a company is actually producing. It is the single best indicator of asset productivity and a leading predictor of pricing power and profitability.
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What's inside
- Definition
- Why it matters
- Formula
- Units & benchmarks
- Key levers
- Where it shows up in cases
- How it's charted
- Worked example
- Common traps
- Industry nuances
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