Seasonally Adjusted Annual Rate (SAAR),
Definition of Seasonally Adjusted Annual Rate (SAAR):
An adjusted rate derived from taking into consideration variations that may influence data. The adjusted rate, in theory, eliminates factors that may influence results obtained. The seasonally adjusted annual rate involves presents the trend in a more accurate light because it factors in period specific events that may otherwise give rise to misleading statistics.
A seasonally adjusted annual rate (SAAR) seeks to remove seasonal impacts on a business to gain a deeper understanding of how the core aspects of a business perform throughout the year. For example, the ice cream industry tends to have a large level of seasonality as it sells more ice cream in the summer than in the winter, and by using seasonally adjusted annual sales rates, the sales in the summer can be accurately compared to the sales in the winter. It is often used by analysts in the automobile industry to account for car sales.
A seasonally adjusted annual rate (SAAR) is a rate adjustment used for economic or business data, such as sales numbers or employment figures, that attempts to remove seasonal variations in the data. Most data is affected by the time of the year, and adjusting for the seasonality means that more accurate relative comparisons can be drawn between different time periods.
How to use Seasonally Adjusted Annual Rate (SAAR) in a sentence?
- A seasonally adjusted annual rate (SAAR) is a rate adjustment used in business to account for changes in data due to seasonal variations.
- Utilizing seasonally adjusted annual rates are useful when comparing business growth, price appreciation, sales, or any data that has to be compared from one time period to another.
- By adjusting data that is affected by seasons, more accurate comparisons can be made between different time periods.
Meaning of Seasonally Adjusted Annual Rate (SAAR) & Seasonally Adjusted Annual Rate (SAAR) Definition