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Politics : Formerly About Advanced Micro Devices

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To: Rod Patten who wrote (120684)7/21/2000 12:30:37 PM
From: semiconeng  Read Replies (3) of 1575840
 
Rod, Re:Although the book-to-bill ratio is not a highly regarded indicator (particularly going forward),

I think I'm going to have to disagree with that statement. Book to bill is a very good indicator going forward. Book To Bill is a ratio of product shipped, to product orders.

If you have a book to bill ration over 1.0, you have more orders coming in, than going out. For example, a BTB of 1.2, means that for every $1.00 of product going out the door (billed), you have $1.20 worth of orders coming in (book).

Since orders are "Booked" for "Delivery" 2-3 months in the future, it is a very good indicator of how a companies next quarter is most likely to be.

SemiconEng
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