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Forecasting
Run rate
Extrapolating a recent period to a full year: a month's revenue times twelve, a quarter's times four. The simplest forecast there is.
Owned by: Entry analystTest band: Entry analyst
The formula
Annual run rate = Monthly figure × 12
In practice
It assumes nothing changes. Fine for a stable subscription base, dangerous for anything seasonal or one-off. Annualise the recurring part only.
The kind of thing the test asks
- March revenue was $120k. What is the annual run rate?
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