Tuesday, December 21, 2010

Run Rate Definition

Run Rate Definition: "Investopedia explains Run Rate
In the context of extrapolating future performance (the first definition), the run rate helps to put the company's latest results in perspective. For example, if a company has revenues of $100 million in its latest quarter, the CEO might say: 'Our latest quarter puts us at a $400 million run rate.' All this is saying is that if the company were to perform at the same level for the next year, they'd have annual revenues of $400 million."