Idle Capacity Definition

Below please find a definition of “Idle Capacity”

Financial Analysis Training & Glossary TermsIdle Capacity: There are times when production facilities and floor spaces remain unused due to lack of sufficient business or possibly a lack of resources or even labor. This lack of unused space is termed as idle capacity. Under the current economic situation, many vehicle manufacturers have suffered from idle capacity due to the lack of demand for vehicles by consumers.

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