Revenue Per Employee Financial Services

Revenue per employee is less in the industries which are labor intensive.

Revenue per employee financial services. However financial service companies rely heavily on human as well as financial capital. One way to measure productivity of human capital is by calculating revenue per employee rpe. Dollars annual revenue per consultant in thousand u s. Therefore it may appear to be less useful in analytical sense.

Revenue per employee is an essential financial ratio calculated by dividing revenues generated for a specific period by the number of employees in a company. Revenue per employee formula. With revenue increase of 1 08 in 3 q 2020 year on year revenue per employee for financial sector grew on trailing twelve months basis to 872 025 above financial sector average. Revenue per employee total ranking has deteriorated compare to previous quarter from to 5.

On the other hand this metric is higher in the high tech low labor intensive companies. Average revenue per employee of professional services organizations worldwide from 2013 to 2019 in 1 000 u s. It helps as a measure of average financial productivity for each employee of the company. Investors interested in calculating a company s revenue per employee can find the required revenue and employee numbers in the company s financial statements and annual.

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. And given that the typical financial advisor can only handle about 100 real financial planning relationships understanding the average revenue per client also provides an indication of the maximum revenue that advisor can ever earn e g 3 000 client every year means a maximum of 300 000 year in revenue for the practice beyond. John reports to his manager that facebook s revenue per employee is 1 5691 million per employee. We examined the companies in the financial services sector to see how they ranked in terms of this human productivity metric.

It equals the company s total revenue divided by the average number of employees for the period.