Metrics & KPIsBook-to-Bill Ratio
Definition
This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can deliver (equals 1), or has less orders than it can deliver (under 1).
Formula
[number of orders] divided by [number of orders that can be delivered]
Use Case / Interpretation
This monthly figure is used frequently for companies in the technology and chip (semiconductor) sector.