Book-to-bill ratio
The book-to-bill ratio is an economic indicator that expresses the relationship between incoming orders and sales within a defined period (usually monthly or over three months). This key figure is mainly used in the technology sectors , especially in the semiconductor sector, and is an important indicator for the state of these sectors and their medium-term development. This key figure can also be set up meaningfully for other industries in which the incoming order is significantly before the invoicing.
A book-to-bill ratio of over 1 (incoming orders is greater than sales) indicates a growing market . In contrast, a book-to-bill ratio less than 1 indicates weak demand.
The US organization Semiconductor Equipment and Materials International (SEMI) publishes on the 20th of each month the book-to-bill ratio of the North American suppliers to the semiconductor industry for the past three months. Similarly, the Semiconductor Equipment Association of Japan determines the book-to-bill ratio for the Japanese semiconductor industry equipment suppliers. In Germany, the Central Association of the Electrical and Electronics Industry (ZVEI) determines this figure. a. for the semiconductor industry and circuit board manufacturers.