Fundamental Glossary / Working Capital & Operational Efficiency
Order Book
The value of contracted orders that have not yet been recognised as revenue.
Formula
Disclosed by capital-goods, infrastructure, and some technology companies. Often called the unexecuted order book.
What it means
The order book is future work that has been won and not yet billed as sales. It gives visibility, not certainty. Orders can be delayed or cancelled.
The book-to-bill ratio, new orders divided by revenue, says whether the book is refilling faster than it is being executed.
How to read it
A growing order book with stable margins on new orders is healthier than a growing book won at lower prices. Ask for the margin, not only the rupees.
What to watch
Related-party orders, unsigned framework agreements, and options that the customer can walk away from are weaker than a funded, signed contract. The disclosure should say which.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.