What is this ratio intended to measure

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Reference no: EM131989503

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 November 2013, the semiconductor equipment industry's book-to-bill ratio was 1.11, compared to 1.05 during the month of October 2013. The book-to-bill ratio reached a recent low of.75 during October 2012 and a recent high of 1.23 during July 2010.

The three month average of worldwide bookings in November 2013 was $1.24 billion, a 4.0 percent decrease from October 2013. What is this ratio intended to measure? Why do you think its closley followed?

Reference no: EM131989503

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