How Do You Calculate Capital Utilization

Calculate the level of actual output. … Determine your potential output level. … Divide actual output by potential output. … Multiply your result by 100. … Interpret your results.

What is the formula for utilization?

The basic formula is pretty simple: it’s the number of billable hours divided by the total number of available hours (x 100). So, if an employee billed for 32 hours from a 40-hour week, they would have a utilization rate of 80%.

How is utilization rate calculated?

1. Add up the balances on all your credit cards.
2. Add up the credit limits on all your cards.
3. Divide the total balance by the total credit limit.
4. Multiply by 100 to see your credit utilization ratio as a percentage.