Back Order

Dictionary Says

Definition of 'Back Order'

A customer order that has not been fulfilled. A back order generally indicates that customer demand for a product or service exceeds a company’s capacity to supply it. Total back orders, also known as backlog, may be expressed in terms of units or dollar amount.
Investopedia Says

Investopedia explains 'Back Order'

Companies have to walk a fine line in managing their back orders. While consistently high levels of back orders indicate healthy demand for a company’s product or service, there is also a risk that customers will cancel their orders if the waiting period for delivery is too long. This is less of a risk for innovative products with strong brand recognition in areas such as technology.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Backlog

    A build-up of ...
  2. Factory Orders

    An economic ...
  3. Durable Goods Orders

    An economic ...
  4. Brand Recognition

    The extent to ...
  5. Law Of Supply And Demand

    A theory ...
  6. Liquidator

    In the most ...
  7. Economic Profit (Or Loss)

    The difference ...
  8. Profit

    A financial ...
  9. Operating Income

    The amount of ...
  10. Price-Earnings Ratio - P/E Ratio

    A valuation ...

Articles Of Interest

  1. Economic Indicators: Factory Orders Report

    The economy has a large impact on the market. Learn how to interpret the most important reports.
  2. Economic Indicators: Durable Goods Report

    The economy has a large impact on the market. Learn how to interpret the most important reports.
  3. Do Cheap Imported Goods Cost Americans Jobs?

    Flooding the market with cheap products can mean job losses and even market collapse - but dumping isn't as threatening as it seems.
  4. Microeconomics: Factors Of Business Decision-Making

    This tutorial teaches the basics of one of the most important economic topics. A must for all investors.
  5. The Impact Of Combining The U.S. GAAP And IFRS

    The convergence of accounting standards is changing the attitudes of CPAs and CFOs toward harmonization of international accounting.
  6. Analyze Cash Flow The Easy Way

    Find out how to analyze the way a company spends its money to determine whether there will be any money left for investors.
  7. Digging Into Book Value

    This calculation will serve up your portion of the shareholder pie.
  8. CPA, CFA Or CFP® - Pick Your Abbreviation Carefully

    A couple of letters can mean a big difference. Find out which designation you need and how to get it.
  9. Using Enterprise Value To Compare Companies

    Learn how enterprise value can help investors compare companies with different capital structures.
  10. Understanding Pro-Forma Earnings

    These figures can either shed light on a company's performance or skew it. Find out why.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center