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FOX Translator
No data currently available.
No data currently available.
The book-to-bill (B-to-B) ratio is the demand-to-supply ratio for orders on a firm's "book" to number of orders processed and billed. A simpler explanation is orders/orders filled (or billed).
If you just ordered a sweater from your favorite
online store, your purchase gets tacked onto the "book" side of the book-to-bill ratio. If you have the bill in your hands,
then your transaction is now added the second "b" of the ratio.
If the company has more orders than it can deliver,
the B-to-B ratio is greater than one. The higher this number is, the higher the backlog of orders that need to be filled/delivered.
If everything is just right and supply is keeping pace equal to demand, the ratio is equal to one. And if it¿s less than one, then the company is hoping orders get a kickstart in order to get some of the dusty inventory off the shelves.
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