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Economic Indicator

Book-to-bill ratio

Business and Consumer Sentiment

The book to bill ratio measures the ratio of new orders received to the amount billed over a given period, usually a month or a quarter, calculated by dividing total orders received by total billings for that period. A ratio above 1.0 signals stronger demand, since more orders are coming in than are being billed, while a ratio below 1.0 signals weaker demand. The measure is widely used in the technology sector, especially in the semiconductor industry, where the semiconductor manufacturing equipment book to bill ratio is treated as an important leading indicator of demand, and it is also tracked across electronics manufacturing services and printed circuit board segments. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/

Facts
Classification
Timing Class
Leading 1
Sources
1. Wikipedia: Book-to-bill ratio
  • Lead paragraph, first sentence defining the ratio
    The book-to-bill ratio, also known as the BB ratio or BO/BI ratio, is the ratio of orders received to the amount billed for a specific period, usually one month or one quarter.
  • Introduction, timing-class
    The measure is widely used in the technology sector, especially in the semiconductor industry, where the semiconductor manufacturing equipment book to bill ratio is treated as an important leading indicator of demand, and it is also tracked across electronics manufacturing services and printed circuit board segments.
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