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Subject: Analysis - Book-to-Bill Ratio
Last-Revised: 19 Aug 1993
The book-to-bill ration is the ratio of business "booked" (orders taken) to business "billed" (products shipped and bills sent). A book-to-bill 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.
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