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1492 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

Showing 2 terms

Capacity utilisation

Fundamental analysis

The share of a plant’s or industry’s productive capacity actually in use.

In plain terms

The single best test of whether a downturn is a cycle or a decline. Falling utilisation with plants shutting means cycle; capacity still arriving means decline.

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Installed capacity

Fundamental analysis
Also called: Rated capacity, Nameplate capacity

The maximum output a company’s plants are rated to produce over a period, disclosed in units rather than rupees.

In plain terms

The ceiling on volume growth without fresh capital expenditure. Set beside actual production it gives capacity utilisation, and beside industry-wide additions it tells you what supply is coming.

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Indian stock market glossary · Market Vidyalaya