Imagine an investor is thinking about buying shares in the XYZ company which is publicly traded. He reads that the company has a backlog of $10 billion dollars in orders. Can he conclude that all those order will definitely happen?
What I am asking is that if a customer places an order for a product with the right to cancel the order, does the company get to count that order in their backlog? If they can, and the economy turns sour then those order might go away with a big drop in the price of the XYZ stock.
Note: The XYZ stock is a fictional company.