IFO4
Loading...A simple annualisation of the most recent measurement period's revenue or spend, computed by extrapolating the period figure to a twelve-month basis. Run-rate is convenient for trend communication but is unreliable as a forecast because it embeds the seasonality and one-time effects of the input period. The federation accepts run-rate as a directional indicator only and requires accompanying disclosure of the underlying period, the seasonality assumption, and any one-time items per UFMS-001:2.4(h). Run-rate misuse is a Tier-3 conduct issue.
A British rail and industrial accounting term applied to annualised performance in the early twentieth century; the SaaS metrics sense stabilised in the 2010s.
Federation members reporting run-rate include the input period and adjustments. Run-rate is permitted in marketing material but must be footnoted in any accreditation evidence under MEV-Annex:3.2. Run-rate substitution for a forecast is challengeable.
@misc{ifo4_glossary_run_rate,
title = {{Run-Rate}},
author = {{IFO4 Federation Editorial Board}},
howpublished = {{IFO4 Federation Glossary, slug \texttt{run-rate}}},
year = {2026},
url = {https://ifo4.org/glossary/run-rate},
note = {Category: FinOps; key: RunRate}
}Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.