Business Metrics

Book-to-Bill Ratio
The book-to-bill ratio is a crucial metric in many industries, particularly in semiconductors, that measures the ratio of orders booked for future delivery to orders being shipped immediately and billed.
Interpolation
Estimating unknown quantities that lie between two of a series of known values. Interpolation is a statistical method often used in various fields including finance, science, and engineering.
Leading Measures
Leading measures are predictive indicators that precede an outcome or result, typically used to forecast future performance and guide decision-making processes. These metrics enable organizations to take proactive actions to achieve desired results.
Market Development Index
The Market Development Index (MDI) measures the relationship between potential and actual customers of a brand within a specific market (geographical area) compared to this relationship on a national scale, aiding in understanding market penetration and identifying growth opportunities.
Market Share
Market share represents the percentage of an industry's sales that is attributed to a particular company or product, indicating its competitiveness within the market.
Net Contribution
Net Contribution refers to the excess of the selling price over variable costs per unit, signifying the residual positive effect from an action taken. It's a critical metric in assessing the profitability and efficiency of various business operations and decisions.
Turnover
Turnover, also known as sales revenue, represents the total income generated by an organization from selling goods and services, excluding discounts and taxes, within a specified period.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.