Book to bill

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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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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.
In addition to providing timely data on PCB market size, sales and order growth, the monthly report also shows data on key leading indicators, including order backlogs and book-to-bill ratios by industry segment, as well as one-year forecasts.
She pointed out that semiconductor suppliers are projecting a resumption of demand this quarter, book-to-bill ratios are reaching parity, and global macroeconomic indicators point to a healthier outlook.
BANNOCKBURN, IL -- The IPC (Association Connecting Electronics Industries) announced May 2008 book-to-bill ratios for rigid PCB shipments was up 5.7%, while bookings for the month were down 4.1% versus May 2007.
The monthly report presents detailed findings on rigid PCB and flexible circuit sales and orders, including separate rigid and flex book-to-bill ratios, military and medical market growth, demand for prototypes, and other timely data.
The book-to-bill ratios and growth rates for rigid PCBs and flexible circuits combined are heavily affected by the rigid PCB segment.
This is a welcome change from no growth in 2015, she added, and the first quarters positive book-to-bill ratios support an expectation of continued growth in the second quarter.
"January is typically a slow month in the PCB business," said IPC President Denny McGuirk, "but a trend toward slower growth in 2007 is clearly emerging in the book-to-bill ratios, which have been below parity for four consecutive months.
"The book-to-bill ratios are also strong, which suggests that the surplus of orders will keep sales healthy in the near term."
This, and the long run of positive book-to-bill ratios in 2015, falling below parity for just one month, indicate the likelihood of continued slow growth in 2016, she added.
The book-to-bill ratio for the rigid PCB industry in June 2007 climbed back up above parity to 1.01.
BANNOCKBURN, IL -- IPC, Association Connecting Electronics Industries, reported the North American rigid PCB industry book-to-bill ratio for February 2007 climbed to 0.96 while the North American flexible circuit book-to-bill ratio increased to 0.97.