What does Run Rate mean?

In business and finance, a run rate is a measure of a company's financial performance over a given period of time, typically a year, based on its performance in the most recent quarter. It is calculated by taking the company's current performance and projecting it out over a full year.

Run rate is often used to forecast future financial performance or to compare a company's performance to that of its competitors. It can be useful for investors and analysts to get a sense of a company's growth potential and financial health. However, it is important to note that a run rate is just an estimate and may not accurately reflect a company's future performance. Factors such as changes in market conditions or the company's business strategy can significantly impact its future financial performance.