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Utilization rate
In business, the utilization rate is an important number for firms that charge their time to clients. It shows the billing efficiency of an individual or a firm. There are two methods to calculate the utilization rate.
The first method calculates the number of billable hours divided by the number of hours recorded in a particular time period. For example if 40 hours of time is recorded in a week but only 30 hours of that was billable, the utilization rate would then be 30 / 40 = 75%.
With this method, however, it's easy to see how this utilization rate can be gamed: if a business stops recording non-billable time, its utilization rate will always be 100%.
The second way to calculate the utilization rate is to take the number of billable hours and divide by a fixed number of hours per week. For example, if 32 hours of billable time are recorded in a fixed 40 hour week, the utilization rate would then be 32 / 40 = 80%.
Note that with this second method it is possible to have a utilization rate that exceeds 100%. If 50 hours of billable time are recorded in a fixed 40-hour week, then the utilization rate would be 50 / 40 = 125%.
抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』
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