# Run Rate

Run Rate
1. How the financial performance of a company would look if you were to extrapolate current results out over a certain period of time.

2. The average annual dilution from company stock option grants over the most recent three year period recorded in the annual report.

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.

The run rate can be a very deceiving metric, especially in seasonal industries. A great example of this is a retailer after Christmas. Almost all retailers experience higher sales during the holiday season. It is very unlikely that the coming quarters will have sales as strong as in the 4th quarter, and so the run rate will likely overstate next year's revenue.

Investment dictionary. . 2012.

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• Run rate — In cricket, the run rate (RR), or runs per over (RPO) is the number of runs a batsman (or the batting side) scores in an over of 6 balls. It includes all runs, even the so called extras awarded due to errors by the bowler. Without extras, the… …   Wikipedia

• run rate — /ˈrʌn reɪt/ (say run rayt) noun 1. Cricket the number of runs scored per over, assessed by dividing the score by the number of overs completed. 2. Finance the projected profit extrapolated for a future period of time from the results actually… …

• run rate — noun the number of runs scored by a side divided by the number of overs taken to score them …   Wiktionary

• Net run rate — NRR redirects here. NRR also refers to Noise Reduction Rating. See also: Net Reproduction Rate Net Run Rate (NRR) is a statistic used in the sport of cricket. It is the most commonly used method of separating teams in one day league competitions …   Wikipedia

• Net Run Rate — Die Net Run Rate (NRR) ist eine Statistik, die im Cricket verwendet wird. Sie dient der Unterscheidung zweier oder mehrerer Mannschaften bei Punktgleichheit in der Tabelle. Die NRR ist allerdings nur in den Spielformen sinnvoll, in denen die… …   Deutsch Wikipedia

• Owner Earnings Run Rate — An extrapolated estimate of an owner’s earnings (free cash flow) over a defined period of time (typically a year). This assumes that the firm s financial performance stays consistent throughout the period. Therefore, this estimate can be… …   Investment dictionary

• Run length limited — or RLL coding is a technique that is used to store data on recordable media. Specifically, RLL prevents long stretches of repeated bits from causing the signal recorded on media to not change for an excessive period, by modulating the data. RLL… …   Wikipedia

• run of book — UK US (also run of book) adjective (ABBREVIATION ROB) MARKETING ► used to describe advertising space in a magazine, newspaper, etc. bought at a rate that does not allow the business buying the space to choose a particular place for their… …   Financial and business terms

• run-of-book — UK US (also run of book) adjective (ABBREVIATION ROB) MARKETING ► used to describe advertising space in a magazine, newspaper, etc. bought at a rate that does not allow the business buying the space to choose a particular place for their… …   Financial and business terms

• Run Length Limited — (RLL) ist eine Gruppe von Leitungscodes, welche im Bereich der Telekommunikation und bei Speichermedien wie magnetischen Plattenspeichern als Schreibverfahren verwendet werden. Die Leitungscodes dieser Gruppe sind dadurch gekennzeichnet, dass… …   Deutsch Wikipedia