Book-to-Bill Ratio
New orders booked in the period divided by revenue billed (worked off) in the same period, expressed as a ratio like 1.15x -- a real-time read on whether demand is growing or shrinking. Above 1.0 means the company signed more new work than it delivered, so backlog is building and future revenue growth is accelerating; below 1.0 means it is burning backlog faster than it is refilling it, a warning that revenue growth is set to slow. "Net" book-to-bill nets out cancellations, making it the honest version. It is the single most forward-looking demand metric for CROs and other order-driven businesses, because it turns before reported revenue does.
Related terms
Accounts Payable · Adjusted EBITDA · Adjusted EBITDA Ex-SBC · ADR · ARPU · Average Length Of Stay
Open this term in the app → — no account needed; browse the full glossary while you research.