Definitions (2)

1. A company or economy's ability to produce goods and services.
2. A borrower's ability to repay a debt (as judged by the lenders).

Use capacity in a sentence

We were at capacity in the plane and could not have anyone else board because there was no room for them.

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You should always try to make sure that you do not exceed capacity or the fire marshall may shut you down.

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When my company tried to get a loan to expand our factory, the bank looked at our lack of profits and decided we did not have the capacity to pay the money back.

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accounting standards competitiveness