Revenue Per Employee Examples

It is a basic measure of the productivity of an economy industry or organization.

Revenue per employee examples. It equals the company s total revenue divided by the average number of employees for the period. 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. 20 00 000 and the number of employees in the organization are 500. 4000 is the average revenue generated by each employee.

In this video we discuss what is revenue per employee ratio. 11 examples of salience. Revenue per employee is impacted by several factors. 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.

Name of company. The definition of intuition with examples of theories that try to explain it. Overall energy companies led the pack in revenue per employee followed by healthcare and utilities. Applying the above formula.

John reports to his manager that facebook s revenue per employee is 1 5691 million per employee. The earnings per employee can be calculated by using net income in place of revenue in the numerator. The definition of. Revenue per employee is a measure of how efficiently a particular company is utilizing its employees.

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. Here we would consider four firms from the same industry for calculating this ratio and see how they compare against each other. Revenue per employee is calculated as total revenue divided by number of employees. Along with its formula calculation examples of tech industry banking industry and auto manuf.

The term revenue per employee rpe ratio refers to the financial metric that measures the dollar amount generated by each employee of a company. 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. A company has total net revenue sales of rs.