Revenue Per Employee Definition Business

Revenue per employee is impacted by several factors.

Revenue per employee definition business. The oil gas industry generates the highest revenue per employee at 3 733 442 4 918 268 usd. 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. 2 million 20 100 000. Revenue per employee is a measure of how efficiently a particular company is utilizing its employees.

It is a basic measure of the productivity of an economy industry or organization. To calculate a company s revenue per employee divide the company s total. Fortune 500 companies average 300 000 per employee. This ratio helps determine how productively a company is able to utilize its employees and contribute to its business growth.

Revenue per employee is an efficiency ratio used to determine the revenue generated per individual working at a company. In general relatively high revenue per employee is a positive sign that suggests the company is finding ways to squeeze more sales revenue out of each of its workers. Revenue per employee is an important ratio that roughly measures how much money each employee generates for the company. Revenue per employee is calculated as total revenue divided by number of employees.

If a company has higher revenue per employee formula it means that the company is generally doing well and trying to make optimum utilization of available manpower in the form of its employees. Your 12 month revenue is 2 million. Your company is producing 100 000 in sales per employee. However real estate investment trusts are the uk s most profitable industry with companies averaging just over.

Capital perhaps surprisingly is subject to the vagaries of accounting definitions and such corporate finance decisions as debt to equity ratios dividend policies and liquidity. The sector we operate in shows average revenue per employee for a small 10 49 employees business of 91 6k per annum. For one unlike roic profit per employee is a good proxy for earnings on intangibles partly because the number of people a company employs is easy to obtain. For larger companies it s usually closer to 200 000.

The uk s most profitable ftse 100 company is little known 3i private equity and venture capital which generates a staggering 5 206 406 6 858 685 usd of profit per employee. The revenue per employee ratio is important for determining the efficiency and productivity of the average employee of a company.