Reference no: EM131727923

Question: Industry-Specific Ratios. Specialized ratios are sometimes used in specific industries. For example, the so-called book-to-bill ratio is closely watched for semiconductor manufacturers. A ratio of .93 indicates that for every $100 worth of chips shipped over some period, only $93 worth of new orders were received. In January 2015 the North American semiconductor equipment industry's book-to-bill ratio was 1.03, with orders of $1.314 billion and billings of $1.276 billion. The most recent peak in the book-to-bill ratio was in February 2010 when it reached 1.23. The most recent low occurred in January 2009 when it reached .47. What is this ratio intended to measure? Why do you think it is so closely followed?