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.

book-to-bill ratio

The dollar amount of orders on the books compared to the dollar amount of orders filled. A high ratio indicates a backlog of orders that should produce revenues and profits in future periods. The book-to-bill ratio is often used to analyze the health of technology companies.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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Book to bill

References in periodicals archive

* Orders grew 8%, to EUR24.5 billion, and revenue rose 4%, to EUR21.3 billion, for a strong book-to-bill ratio of 1.15 and record high order backlog of EUR144 billion

Siemens AG -Earnings Release and Financial Results Q3 FY 2019: Siemens continues to grow despite significant headwinds in key markets

Net bookings totaled $3B in the quarter, representing a book-to-bill ratio of 1.1.

Leidos reports Q2 EPS $1.16, consensus $1.11

Bookings during the third quarter of fiscal 2019 were USD 331.2 million, with a company-wide book-to-bill ratio (a measure defined as bookings divided by net sales) of 1.94 with both its Commercial and Government Solutions Segments achieving book-to-bill ratios in excess of 1.00.

Comtech Telecommunications announces Q3 2019 results

Bookings during the quarter were USD157.4m, with a company-wide book-to-bill ratio (a measure defined as bookings divided by net sales) of 0.98.

Comtech Telecommunications swings to profit in Q1 fiscal 2019

The book-to-bill ratio during the third quarter was very slightly below 1.0.

IPG lowers Q3 revenue predictions

1.05 North American PCB book-to-bill ratio for June 2018

INDUSTRY UPDATE

During the quarter ended March 31, 2017, the company's book-to-bill ratio for equipment and related services (non-turnkey) was 1.0.

OSI Systems Q3 2017 revenues up 16% YoY

"We continue to anticipate that orders will materially exceed revenue for a book-to-bill ratio clearly above 1.

Siemens raises outlook following quarterly growth

In addition to its delivery target, Boeing had set a target of maintaining at least a one-to-one book-to-bill ratio in 2015, and the company appears to be close to that, but could end up just a bit short.

Commercial Jet Orders to Close 2015 Sharply Below 2014

The book-to-bill ratio rose to 0.99, meaning for every 100 euros of boards shipped, 99 euros worth of boards were ordered.

German PCB market headed up