Run rate and result, extrapolated (run rate)

A forecast of a company’s results based on the success achieved to date (how the financial performance of a company would appear if one extrapolated current results out over a certain period). Although the run rate is rightly considered to be highly questionable because it assumes in particular uniform sales over the coming period. On the other hand, however, it does provide an aid for rough forward planning in the company. Banks also like to base their loan applications on the run rate, and the run rate is regularly asked for when applying for subsidies. For the rating agencies, the run rate forms a valuable basis for decision-making.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/