Book to bill


Also found in: Acronyms.

Book to bill

The book-to-bill ratio is the ratio of orders taken (booked) to products shipped and bills sent (billed). The ratio measures whether the company has more orders than it can deliver (>1), equal amounts (=1), or less (<1). This ratio is of significant interest to investors/ traders in the high-technology sector.

Book to Bill

A ratio of orders taken to invoices sent over a set period of time. In other words, a book-to-bill ratio compares current customers (orders taken) to previous customers (invoices sent). This is a tool used to calculate whether demand for a good or service is rising or falling. A book-to-bill ratio of less than one indicates falling demand, while a ratio of greater than one shows growth, after accounting for seasonal or other fluctuation. The semi-conductor industry makes particular use of this ratio.
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Outsourcing book to bill is 108% on a year to date basis (2009: 103%) and based on our high visibility, we expect good growth in Outsourcing Services through the remainder of the year.
On a year to date basis, book to bill in Sweden is 132% (2009: 121%), with third quarter book to bill at 77% (2009: 72%).
On a year to date basis, book to bill is stronger than last year at 103% (2009: 87%).
1 Book to bill percentage is a measure of the level of orders relative to revenue in the period.
Book to bill was 79% on a year to date basis (2009: 83%), with full year book to bill expected to be above 100%.