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Financial Terms | |
productive capacity |
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Definition of productive capacityproductive capacitythe number of total units that could be
Related Terms:Economic earningsThe real flow of cash that a firm could pay out forever in the absence of any change in CapacityThe maximum volume of products or services that can be produced given limitations of space, capacitya measure of production volume or some other activity base Capacity utilizationThe proportion of capacity that is able to be utilized to fulfil customer demand for products Debt capacityAbility to borrow. The amount a firm can borrow up to the point where the firm value no Debt CapacityAn assessment of ability and willingness to repay a loan from anticipated future cash flow or other sources. Excess CapacityUnused production capacity. ![]() expected capacitya short-run concept that represents the ideal capacitysee theoretical capacity normal capacitythe long-run (5–10 years) average production practical capacitythe physical production or service volume that a firm could achieve during normal working hours with consideration given to ongoing, expected operating interruptions theoretical capacitythe estimated maximum production or Replacement Capital ExpendituresCapital expenditures required to replace productive Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |