How to read and analyze Order Book ? A quick thread 🧵
Dont get fared away by fancy statement Current Order book is X times of TTM revenue
#investing #curatedread #StockMarket
Dont get fared away by fancy statement Current Order book is X times of TTM revenue
#investing #curatedread #StockMarket
Most of stakeholders get flown away with big order intake or order book size which is XX times of TTM revenue. This is ❌️ approach
Always see the timelines of revenue realization of order book which will give you clear picture of potential future annual revenue from order book
Always see the timelines of revenue realization of order book which will give you clear picture of potential future annual revenue from order book
Here is one example
Data Patterns which is having order book of INR 880 crores will be realized & executed in next two years thereby generating revenue of INR 440 crores which is in-line with current TTM revenue of INR 449 crores.
Data Patterns which is having order book of INR 880 crores will be realized & executed in next two years thereby generating revenue of INR 440 crores which is in-line with current TTM revenue of INR 449 crores.
If you have looked otherwise without considering timelines of execution you would have concluded that current order book size is 2X of TTM revenue.
Other factors to consider in analyzing order book are margin guidance from said order book, capex and debt to be undertaken to execute the said order book, type of orders - non-binding or binding, order book diversification (product and clientele)
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