Revenue Per Employee Formula

A company has total net.

Revenue per employee formula. Revenue per employee calculates the number of sales generated by one employee or sales done by each employee. Formula for revenue per employee. The revenue per employee formula. It is an easy indicator of productivity efficiency of an organization s personnel.

Revenue per employee formula. To perform the revenue per employee calculation divide the revenue 5 000 000 by the number of employees 100. Sales revenue per employee total revenue no. E is the total number of workers.

This is one of the important measures of performance of employees of the company. Therefore the firm earned 2 778 per employee during the year 2018. What is revenue per employee. The revenue per employee ratio is important for determining the efficiency and productivity of the average employee of a company.

Revenue per employee formula. The formula for the ratio is as follows. R is your companies total revenue. It helps as a measure of average financial productivity for each employee of the company.

It equals the company s total revenue divided by the average number of employees for the period. 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. Simply divide your companies total revenue by how many workers you have and you will have the revenue per employee figure. Another similar type of ratio is net income per employee.

It measures the average net income earned by each employee. Revenue per employee is an efficiency ratio used to determine the revenue generated per individual working at a company. Revenue per employee ratio is calculated using the formula given below. Revenue per employee ratio total sales average no.

For example imagine a company has a yearly revenue of 5 million and has an average of 100 employees for that year. In this case you would find the revenue per employee formula gives you a ratio of 50 000 per employee. Revenue per employee ratio formula. Of employees 15 0 million 5 400 2 778 78.

Rpe r e. The revenue per employee calculation is a very simple calculation.