What does the term "power factor" represent?

The term "power factor" is defined as the ratio of real power, which is the power that actually does useful work in the circuit, to the apparent power, which is a combination of both real power and reactive power (the power that is stored and released but not used for useful work). This ratio expresses how effectively electrical power is being converted into useful work output and is an important concept in AC circuits, where both real and reactive power are present.

A power factor of 1 (or 100%) indicates that all the power is being used effectively, while a lower power factor signifies that a portion of the power is wasted, often due to inductive loads like motors or transformers. Thus, understanding power factor is crucial for optimizing energy use and improving the efficiency of electrical systems.