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When this ratio is expanding (the ratio is greater than 1), it indicates that an organization is able to replace its order backlog with new orders. Explore the definition, calculation and examples of the book to bill ratio. Simply take the number of orders received and divide it by the number of orders that shipped during a set period of time.

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This is a ratio that many b2b marketers watch closely because it gives an early indication of where the company’s business is headed (up or down) Usually, it only considers a specific period which is a month or a quarter. It is pretty simple math

Take the bookings (orders) / billings (revenue)

This means your future is bright.