8. Industry-specific ratios [LO 3.2] Specialised 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 0.93 indicates that for every $100 worth of chips shipped over some period, only $93 worth of new orders were received. In November 2016, the semiconductor equipment industry’s book-to-bill ratio was 0.96, compared to 0.91 during the month of October 2016. The bookto-

bill ratio reached a recent low of 0.47 during January 2009 and a recent high of 1.23 during July 2010. What is this ratio intended to measure? Why do you think it is so closely followed?