Subject: Analysis - Book-to-Bill Ratio
Last-Revised: 19 Aug 1993
Contributed-By: Timothy May
The book-to-bill ratio is the amount of business "booked" (orders taken) divided by the amount of business "billed" (products shipped and bills sent).
A book-to-bill ratio of 1.0 implies incoming business = outgoing product. Often in downturns, the b-t-b drops to 0.9, sometimes even lower. A b-t-b of 1.1 or higher is very encouraging.
Previous article is Analysis: Beta and Alpha
Next article is Analysis: Book Value
Category is Analysis|
Index of all articles