Revenue Per Employee Explain

We note that ferrari has the highest sales per employee with approx.

Revenue per employee explain. Let s take for example the company xyz. Revenue per employee is impacted by several factors. Revenue per employee example. Revenue per employee is calculated as total revenue divided by number of employees.

In general the top tech company s revenue per employee is more than the manufacturing companies revenue per employee. The earnings per employee can be calculated by using net income in place of revenue in the numerator. As such we have 50 000 000 312. In these cases useful modifications to the basic rpe equation formula might include switching focus to say revenue per dollar of payroll expenditure or gross rpe rather than net.

Revenue of 1 1 million per employee. 20 00 000 and the number of employees in the organization are 500. 4000 is the average revenue generated by each employee. Some would argue of course that profit per employee is what really matters.

We must divide the total revenue by the number of employees. Revenue per employee is an important ratio that roughly measures how much money each employee generates for the company. Applying the above formula. A company has total net revenue sales of rs.

It is a basic measure of the productivity of an economy industry or organization. If a company has a high revenue per employee amount then that is an indication that. Example 4 banking industry. Revenue per employee is a measure of how efficiently a particular company is utilizing its employees.

In 2005 they had a revenue of 50 000 000 and a number of 312 employees. To calculate a company s revenue per employee divide the company s total. It s important to understand a company s revenue per employee in order for a company to find effective uses for its employees. Revenue per employee is an efficiency ratio used to determine the revenue generated per individual working at a company.

The result is 160 256 41. The revenue per employee ratio is important for determining the efficiency and productivity of the average employee of a company.