Revenue Per Employee Cost

Google and facebook the two most efficient companies generate 1m per revenue per employee per year.

Revenue per employee cost. Revenue per employee ratio formula in excel with excel template here we will do the same example of the revenue per employee ratio formula in excel. In this article we will discuss the ready to use excel template profit per employee calculator what it is and how to use this template. Revenue per employee 40 000 net revenue 850 000 average fte 21 25 of course you should also look at profit numbers not just revenue figures. To calculate a company s revenue per employee divide the company s total.

In other words this metric assesses how well a company is able to leverage its manpower in order to make more revenue. Profit per employee calculator is a ready to use excel template to measure the monthly quarterly half yearly and yearly profit per employee ppe of an organization. Revenue per employee is the ratio of revenue generated per employee of a company on an average. Revenue per employee formula.

This ratio gives an idea about how the company will perform in a specific quarter especially considering the revenue vs cost of each employee of the company. You need to provide the two inputs i e revenue and number of employees. With revenue increase of 7 27 in the third quarter 2020 year on year to cumulative value of 160 876 millions costco wholesale s revenue per employee grew on trailing twelve months basis to a new company high of 784 761. Revenue per employee is an essential financial ratio.

Sales per employee comment. Let s start with joe hadzima a senior lecturer at mit who provides a simple formula to calculate the actual cost of an employee according to hadzima once you have taken into consideration basic salary taxes and benefits the real costs of your employees are typically in the 1 25 to 1 4 times base salary range in other words an employee earning 30 000 will cost you somewhere between. Setting aside those exceptional cases and focusing instead on saas companies the typical average revenue per employee is about 190k to 210k per year. Within retail sector costco wholesale corp achieved highest revenue per employee.

One way of measuring the efficiency of a company s revenue model is to benchmark revenue per employee. It is very easy and simple. 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 important ratio that roughly measures how much money each employee generates for the company.

The revenue per employee will vary between each market where companies with low repetition activity will have the highest costs therefore will have the lowest revenue per employee amount.