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.
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 book-to-bill ratios and growth rates for rigid PCBs and flexible circuits combined are heavily affected by the rigid PCB segment.
"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."
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.