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Backlog Quality Tracker
Reconcile orders, cancellations and deliveries before interpreting demand.
Your research worksheet
Enter your own data or load a dated example. Reported facts and scenario assumptions are labeled separately.
One period, one definition
Use monetary amounts, one currency and one unit, and the company’s own backlog definition. Do not combine units of hardware, contract ceilings, reservations and firm monetary orders. Backlog removal is not automatically equal to reported revenue: use a disclosed backlog release figure where available. If the company does not disclose the bridge, missing terms remain unknown; do not type zero simply to make the calculation run.
Formula: opening backlog + additions − cancellations − fulfillment + other adjustments = calculated closing backlog. With only opening and closing balances, the tool reports backlog change and identifies missing fields. A full bridge is calculated only when every component is supplied. A residual flags an incomplete bridge. A bridge that reconciles still does not prove profitable delivery.
Worked example — hypothetical
Opening 1,000; new orders 400; cancellations 50; fulfillment 250; other adjustments 0; closing 1,100. Backlog rose 10%, while released backlog was 25% of the opening balance. That ratio is a descriptive period metric, not an annual conversion forecast.
Repeat the worksheet each reporting period
Print a copy with the reporting period and source attached. Compare cancellation terms, delivery schedule, margin and operating cash flow alongside the arithmetic. A longer order book can coexist with delays, low-margin contracts or rising working-capital needs.