Revenue Per Employee Analysis

Therefore it may appear to be less useful in analytical sense.

Revenue per employee analysis. Customized research analysis projects. John reports to his manager that facebook s revenue per employee is 1 5691 million per employee. Given only the revenue and number of employees of different companies operating in the same industry use the revenue per employee ratio to find which company is more productive. Apple ranked in second place with.

Google and facebook the two most efficient companies generate 1m per revenue per employee per year. In general the top tech company s revenue per employee is more than the manufacturing companies revenue per employee. Example 4 banking industry. We note that ferrari has the highest sales per employee with approx.

The term revenue per employee rpe ratio refers to the financial metric that measures the dollar amount generated by each employee of a company. Revenue per employee is an absolute figure in terms of a currency. Revenue per employee also called sales per employee is a financial ratio that measures the revenue generated by each employee of the company on average. Revenue per employee is less in the industries which are labor intensive.

On the other hand companies that have the highest repetition and more streamlined technology solutions will have the highest revenue per employee amounts. For companies in the financial services sector return on assets is one popular comparison metric. Financial services companies revenue per employee analysis. Dollars of revenue per employee.

In other words this metric assesses how well a company is able to leverage its manpower in order to make more revenue. In 2019 netflix was the most effective company generating over 2 34 million u s. However financial service companies rely heavily on human as well as. To calculate a company s revenue per employee divide the company s total.

On the other hand this metric is higher in the high tech low labor intensive companies. Setting aside those exceptional cases and focusing instead on saas companies the typical average revenue per employee is about 190k to 210k per year. Revenue per employee is an important ratio that roughly measures how much money each employee generates for the company. Analysts use a variety of productivity metrics to compare a company s financial health with its peers.

Fiat on the other hand makes around 538 122 per employee. One way of measuring the efficiency of a company s revenue model is to benchmark revenue per employee.