Revenue Per Employee By Company

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.

Revenue per employee by company. 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. In contrast the table below shows the 25 companies with the lowest revenue per employee in 2018 in the s p 500 along with how their revenue per employee compared to 2017. The revenue per employee is a calculation which will calculate how much revenue each employee brings in for the company on average. Example 4 banking industry.

It s important to understand a company s revenue per employee in order for a company to find effective uses for its employees. To calculate a company s revenue per employee divide the company s total. Revenue per employee is an important ratio that roughly measures how much money each employee generates for the company. For each employee they have upto 1 5 contractors who don t count.

Verisign which provides domain names and internet security was a strong performer generating 1 1bn in revenue from only 990 employees ranking fourth in the technology sector with 1 2m per employee. We note that ferrari has the highest sales per employee with approx. One way of measuring the efficiency of a company s revenue model is to benchmark revenue per employee. Also public companies which have huge revenues pad this number by having 50 100 150 of their ftes as contractors i e.

Setting aside those exceptional cases and focusing instead on saas companies the typical average revenue per employee is about 190k to 210k per year. Fiat on the other hand makes around 538 122 per employee. Revenue of 1 1 million per employee. Examining this metric as the company grows and scales over a series of years can reveal quite a bit about the.

The stage you re in matters a lot for this metric. Overall energy companies led the pack in revenue per employee followed by healthcare and utilities. It equals the company s total revenue divided by the average number of employees for the period. Revenue per employee is one of the most telling efficiency metrics for saas businesses.

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.