Term · Business Model & Operating KPIs
Order Intake
In briefOrder intake is the value of orders newly received in a period, a flow measure before revenue recognition. It feeds the backlog and is regarded as a leading indicator of future revenue. However, orders can be canceled or postponed, which is why it is not guaranteed revenue.
Definition
Order intake denotes the value of orders newly received in a period. It is a flow measure that feeds the backlog but does not yet represent realized revenue. Order intake is regarded as an early indicator of future revenue development.
How it is calculated
Formula. Backlog at period end = backlog at period start + order intake − orders converted into revenue
Why it matters for small caps
In project- or plant-driven small caps, order intake signals demand fluctuations earlier than reported revenue. A collapsing order intake can herald future revenue pressure.
Common misreadings
- Order intake is not revenue: orders can be canceled, postponed, or realized only over several periods.
In the process
Frequently asked
How do order intake and backlog differ?
Order intake is the inflow of new orders in a period. The backlog is the accumulated stock of not-yet-processed orders at a reporting date.
Why is order intake used as a leading indicator?
It shows current demand before it is reflected in revenue. A decline can therefore point to weaker future revenue.
What are the limitations of the metric?
Orders can be canceled or postponed. Without information on cancellation rates and realization periods, its informative value is limited.
Related terms
Education only, not investment advice. Ranges and thresholds are didactic orientation values, not an official standard.