What is Utilization Rate?

A definition of Utilization Rate

“Utilization rate measures how efficiently a business uses its resources, typically expressed as a percentage of total capacity. It indicates how well a company is using its available resources over a period of time.”

Utilization Rate in Business Glossary - What is a Utilization Rate?

Business Glossary > What is Utilization Rate?


Examples of Utilization Rate in a Sentence:

The utilization rate of our factory is currently at 85%.

Increasing our team’s utilization rate can lead to higher profits.

We aim to improve our resource utilization rate this quarter.

Why is Utilization Rate Important in Business?

Understanding utilization rate is crucial for businesses aiming to optimize their resources and improve efficiency. High utilization rates typically indicate better resource use and potentially improved profitability, making it vital for strategic planning and operational decisions.

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Associated Terms

Here are some associated business terms and synonyms for “Utilization Rate”:

  • Capacity Utilization
  • Resource Efficiency
  • Productivity Rate

Delta Airlines Utilization Rate

Delta Airlines closely monitors its aircraft utilization rate to ensure efficient use of its fleet. By optimizing flight schedules and reducing idle time, the company maintains a high utilization rate, improving operational efficiency and competitiveness in the airline industry.

Final Notes on Utilization Rate

Companies should monitor utilization rates to ensure optimal resource use and identify inefficiencies. This allows them to adjust operations strategically, reducing costs and maximizing output.


This has been a definition of Utilization Rate meaning.

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