Revenue Per Employee Average

The earnings per employee can be calculated by using net income in place of revenue in the numerator.

Revenue per employee average. Google and facebook the two most efficient companies generate 1m per revenue per employee per year. Some of the advantages and disadvantages mentioned below. Revenue per employee is affected by a company s employee turnover rate where turnover is defined as the percentage of the total workforce that leaves voluntarily or is fired each year and. It equals the company s total revenue divided by the average number of employees for the period.

A company has total net revenue sales of rs. It s important to understand a company s revenue per employee in order for a company to find effective uses for its employees. It measures the average net income earned by each employee. Generated 0 22 million per employee during 2018.

One way of measuring the efficiency of a company s revenue model is to benchmark revenue per employee. Of employees 500 34 billion 2 3 million 0 22 million. Revenue per employee formula. Revenue per employee ratio total revenue average no.

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. The revenue per employee is a calculation which will calculate how much revenue each employee brings in for the company on average. Revenue per employee is an essential financial ratio calculated by dividing revenues generated for a specific period by the number of employees in a company. Setting aside those exceptional cases and focusing instead on saas companies the typical average revenue per employee is about 190k to 210k per year.