Net Revenue Per Employee
Example 4 banking industry.
Net revenue per employee. Net income per employee nipe is a company s net income divided by the number of employees. Formula text revenue per employee frac text net revenue text average number of employees example. Revenue per employee ratio net sales average no. Revenue of 1 1 million per employee.
Revenue per employee is an important ratio that roughly measures how much money each employee generates for the company. In general the top tech company s revenue per employee is more than the manufacturing companies revenue per employee. Generated 2 01 million per employee during 2018. We note that ferrari has the highest sales per employee with approx.
And show the calculation of the rpe ratio for it. A similar ratio is net income per employee which measures net income earned by each employee on average. If a company employs 50 people and has a revenue of 7 5m annually their revenue per employee ratio is 150 000 on an annual basis. Auditing tax and consultancy are labor intensive industries.
If a company employs 50 people and has a revenue of 7 5m annually their revenue per employee ratio is 150 000 on an annual basis. The big four accounting firms are few of the world s largest. That is revenue per employee net revenue number of employees. To calculate a company s revenue per employee divide the company s total.
If they begin working on a new product line and hire an additional 25 employees based on the same revenue their revenue per employee ratio will be 100 000 annually. This number shows the company how efficient it is with its employees. Hence this financial spreadsheet template is something that you should download. Theoretically the higher the net income per employee the better.
Let s take the example of walmart inc. If they begin working on a new product line and hire an additional 25 employees based on the same revenue their revenue per employee ratio will be 100 000 annually. Earned a total. Fiat on the other hand makes around 538 122 per employee.
Aside from increasing the productivity of employees this number could be increased by a number of other factors.