book-to-bill ratio

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.
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References in periodicals archive ?
A total of 1,109 net commercial aircraft orders were received, with a book-to-bill ratio of 1.
Although sales and orders continued below last years levels, the PCB book-to-bill ratio continued upward, reaching 1.
Year-over-year sales and order growth continued in August, and the book-to-bill ratio climbed to 1.
The Bangko Sentral noted that the book-to-bill ratio for the electronics industry improved significantly to 2.
The two were stock price index and floor area permitted for building construction; while the five included SEMI book-to-bill ratio, the index of producer's inventory, average monthly overtime in industry and services, real monetary aggregates M1B, and index of export orders.
5 billion so a book-to-bill ratio - or demand-to-supply ratio for orders on a "firm's book" to orders filled - of over two remained impressive for order-driven stock.
The book-to-bill ratio for the rigid PCB industry in June 2007 climbed back up above parity to 1.
07 billion in orders in June 2005 (three-month average basis) and a book-to-bill ratio of 0.
In September, the book-to-bill ratio for chip-making equipment on a three-month moving average basis came to 0.
The North American IMS/PCB Industry Book-to-Bill Ratio for December 2003 remained positive at 1.
North America-based manufacturers of semiconductor equipment posted a September 1999 Book-to-Bill ratio of 1.
President and CEO George Perlegos says that in addition to record quarterly sales, the positive bookings trend accelerated through the second-quarter giving the company a book-to-bill ratio of more than 1.