Revenue Per Employee Que Es
Applying the above formula.
Revenue per employee que es. Therefore it may look less useful in an analytical sense. Allocative efficiency a business strategy that allocates employees to productive things. 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. If a company has a high revenue per employee amount then that is an indication that.
Example 4 banking industry. 20 00 000 and the number of employees in the organization are 500. Annual revenue went up from 31 000 per employee in 1989 to 122 000 in 1994. The revenue per employee is a calculation which will calculate how much revenue each employee brings in for the company on average.
Overall energy companies led the pack in revenue per employee followed by healthcare and utilities. To calculate a company s revenue per employee divide the company s total. For example a failed project has a. For interpretation purpose revenue per employee the figure should be compared with the historical data of the company or industry to see any deterioration or improvement.
A company has total net revenue sales of rs. It must also be compared with the other peer. It equals the company s total revenue divided by the average number of employees for the period. Revenue of 1 1 million per employee.
John reports to his manager that facebook s revenue per employee is 1 5691 million per employee. 000 libras en 1989 a 122 000 en 1994 cuando fue com pr ada por bmw. 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 also called sales per employee is a financial ratio that measures the revenue generated by each employee of the company on average.
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. 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. Revenue per employee is impacted by several factors.
We note that ferrari has the highest sales per employee with approx. 4000 is the average revenue generated by each employee. Revenue per employee is an important ratio that roughly measures how much money each employee generates for the company. Revenue per employee is an absolute figure in terms of given currency.