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 Post subject: I am not embarrassed to ask
Posted: Sat Mar 17, 2007 5:22 pm 
 
Captain
User avatar

Joined: Tue Dec 26, 2006 5:39 pm
Posts: 21
What is a "book to bill ratio" .

I have been reading about how it is going up or down for decades, but I have never found anyone that knows what it is !


 
   
 
 Post subject:
Posted: Mon Mar 19, 2007 12:39 pm 
 
General
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Joined: Wed Aug 20, 2003 11:47 am
Posts: 84
Location: Santa Barbara, CA
I believe it refers to the fact that most equipment manufacturers don't bill until after the equipment has shipped (30 day net). The book (entering orders into the books) to bill ratio looks at the how the sales are coming in vs. the orders going out the door. You would want that book to bill ratio to always be slightly greater than 1.0, I would think. A massive increase of book to bill would suggest that production capacity needs to be increased. A drastic decrease of book to bill indicates that your resume needs to be up to date. :lol:





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