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Order Backlogs Are Overrated on Wall Street

You need to cover another subject as you don't understand backlogs. Cancellations are not necessarily free. Cancellations can always occur -- large backlogs or small. At times when capacities are tight, there is water in backlogs. Responsible CFO's factor in an estimate of this. In good times division managers tend to underreport backlogs as they create expectations of better performance. In bad times its irrelevant as life stinks anyway.