Revenue Per Employee Ratio

Revenue per employee is an efficiency ratio used to determine the revenue generated per individual working at a company.

Revenue per employee ratio. This is one of the important measures of performance of employees of the company. The revenue per employee ratio is important for determining the efficiency and productivity of the average employee of a company. Simply divide your companies total revenue by how many workers you have and you will have the revenue per employee figure. To do that they usually use an analytical tool the revenue per employee ratio.

Revenue per employee is an important ratio that roughly measures how much money each employee generates for the company. What is revenue per employee ratio. Revenue per employee calculates the number of sales generated by one employee or sales done by each employee. It helps as a measure of average financial productivity for each employee of the company.

Rpe is the revenue per employee figure. To calculate a company s revenue per employee divide the company s total. The revenue per employee calculation is a very simple calculation. 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.

To estimate how efficiently and productively the company utilizes its resources. It equals the company s total revenue divided by the average number of employees for the period. R is your companies total revenue. Revenue per employee ratio formula.

E is the total number of workers. Revenue per employee revenue current number of employees. The revenue per employee formula. Rpe r e.

It is an easy indicator of productivity efficiency of an organization s personnel. The term revenue per employee rpe ratio refers to the financial metric that measures the dollar amount generated by each employee of a company.