Utilization Rate
In finance, the Utilization Rate is the ratio of funds borrowed by a corporation to the total available funds under a revolving credit line or loan facility.
Benefits
The utilization rate shows borrowing efficiency, guiding financial management under credit lines.
Frequently Asked Questions
What is the utilization rate ratio?
The utilization rate ratio measures how much of the available resources are used, indicating operational efficiency.
What is utilization in resource management?
Utilization in resource management measures how effectively resources are used to achieve business goals.
What is utilization in finance?
Utilization in finance means how much a company uses its available financial resources, like credit lines or assets, to generate revenue.
Key Takeaway
The utilization rate measures borrowing efficiency, aiding in financial management.