Seasonally Adjusted Annual Rate

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Seasonally Adjusted Annual Rate

A rate used to reduce seasonal noise on a company's sales or revenue information. For example, many retail companies tend to have higher sales figures at the end of the calendar year because of the holiday season. Comparing the raw data may make the company's sales look better than they are. The SAAR is designed to even out that trend. It is calculated by taking the raw annual rate for a given month and dividing by a seasonality factor.
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Total existing home sales reached a seasonally-adjusted annual rate of 5.
This amounts to a seasonally-adjusted annual rate (SAAR) of 16.