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// definition

Run rate

Annualized revenue pace

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Private credit & markets

Short definition

An extrapolation of revenue from a recent period to one year. Multiplying one month’s revenue by twelve gives an annualized pace, assuming it persists. The result depends on scope, discounts and the measurement period; it measures neither revenue already earned during the year nor future purchases guaranteed by contract.

risk atlas

Knowledge map

Intuition

Projecting a recent pace helps describe a growing business when the measurement period and scope are explicit.

Formula

Example: annual run rate = monthly revenue × 12, assuming the pace persists

Related analyses

Primary sources