Definition of 'Backlog'
A build-up of work that needs to be taken care of. The term "backlog" has a number of uses in finance. It may refer to a company's sales orders waiting to be filled or a stack of financial paperwork that needs to be processed, such as loan applications. When a public company has a backlog there can be implications for shareholders, because the backlog may have an impact on the company's future earnings, as the company is unable to meet demand. A backlog is generally something that companies want to avoid.
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