Backlog

Backlog means orders or work that a company has received but not yet completed or delivered. In simple terms, backlog shows future work or sales already lined up. Backlog is important because it can give investors visibility into future revenue. A growing backlog may suggest strong demand, while a shrinking backlog may suggest weaker future activity. For example, an airplane manufacturer may have a backlog of aircraft orders to deliver over several years. Backlog is not the same as completed revenue. It usually represents future work, and some orders may be delayed, changed, or canceled.