Seasonally adjusted annual rate

The Seasonally Adjusted Annual Rate (SAAR) is a rate that is adjusted to take into account fluctuations of values in the data which might occur due to seasonality. Such data would be affected by the time of the year and thus it would be misleading to draw comparisons month-to-month all year long. An example would be occupancy rates of ski resorts, which would by default be higher during winter as compared to summer. Sales between these two seasons can only be fairly compared through seasonally adjusted rates. The SAAR is calculated by dividing the unadjusted annual rate for the month by its seasonality factor and creating an adjusted annual rate for the month.

References

• Investopedia's entry on the SAAR

See also

• Seasonal adjustment