Book to bill

(redirected from Book-to-Bill Ratios)

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.
Mentioned in ?
References in periodicals archive ?
Growth rates and book-to-bill ratios for the first quarter changed slightly from previously published reports, due to a re-tabulation necessitated by a change in the survey sample this month.
BANNOCKBURN, IL -- The IPC (Association Connecting Electronics Industries) announced May 2008 book-to-bill ratios for rigid PCB shipments was up 5.
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.
The book-to-bill ratios and growth rates for rigid PCBs and flexible circuits combined are heavily affected by the rigid PCB segment.
Book-to-bill ratios in both segment are still below parity, which indicates a slowdown in growth in early 2007.
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.
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 ratios are also strong, which suggests that the surplus of orders will keep sales healthy in the near term.