What does a higher Utilization percentage indicate?

A higher utilization percentage indicates that the vehicle fleet is being used more efficiently, which means that a larger proportion of the fleet is actively generating revenue or is in use compared to the total number of vehicles available. High utilization reflects effective fleet management practices where vehicles are properly scheduled and utilized for rentals, thereby maximizing income potential. This increased efficiency helps to reduce idle time for vehicles and can lead to better overall profitability for the company, as more vehicles are being rented out and earning revenue.

In contrast, low utilization might suggest issues such as overstaffing of vehicles that are not being rented frequently, leading to inefficiencies and higher costs for the company.