Revenue Per Employee Ratio Formula

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.

Revenue per employee ratio formula. Rpe is the revenue per employee figure. This is one of the important measures of performance of employees of the company. R is your companies total revenue. Revenue per employee formula.

Revenue per employee ratio formula. It is an easy indicator of productivity efficiency of an organization s personnel. Revenue per employee ratio is calculated using the formula given below. It helps as a measure of average financial productivity for each employee of the company.

The revenue per employee formula. In this video we discuss what is revenue per employee ratio. 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. Revenue per employee calculates the number of sales generated by one employee or sales done by each employee.

John reports to his manager that facebook s revenue per employee is 1 5691 million per employee. It helps as a measure of average financial productivity for each employee of the company. Revenue per employee ratio net sales average no. The revenue per employee calculation is a very simple calculation.

Along with its formula calculation examples of tech industry banking industry and auto manuf. Revenue per employee ratio formula revenue per employee is an important financial ratio calculated by dividing revenues generated for a specific period by the number of employees in a company. E is the total number of workers. 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.