run rate

Definition

The result of extrapolating financial data collected from a period of time less than one year to a full year.

Use run rate in a sentence

You need to figure out the best way to use your run rate to your advantage to make as much as you can from it.

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The run rate strategy was effective as we wanted to project our future expected financial health information to a larger time period.

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It was difficult to determine if the company would continue to experience growth, because the business was started a year earlier and management could not rely upon the run rate.

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run out of burn rate