Revenue Per Employee Service Industry

Revenue per employee comment.

Revenue per employee service industry. For the past few years one popular metric in the financial sector has been revenue per employee rpe. Revenue per employee formula. One way to measure productivity of human capital is by calculating revenue per employee rpe. The service industry is a common example of lower revenues per employee.

Dollars annual revenue per consultant in thousand u s. For tech companies we looked at rpe and compound annual growth rate of revenue and employees between 2014 2017. With revenue increase of 7 57 in 2 q 2019 year on year revenue per employee for communications services industry grew on trailing twelve months basis to 1 484 280 above communications services industry average. It helps as a measure of average financial.

There is generally a growth in revenue per employee for tech companies. Companies may attempt to correct this by streamlining operations or creating specialized tasks for each employee in the service process. For companies in the financial services sector return on assets is one popular comparison metric. Rpe provides perspective on overall employee efficiency and is free from the ambiguity of operating expenses.

Oil companies generate over 2 000 000 in revenue per employee. The average small business actually generates about 100 000 in revenue per employee. Revenue per employee is the ratio of revenue generated per employee of a company on an average. Revenue per employee total ranking has deteriorated compare to previous quarter from to 7.

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. Within services sector 7 other industries have achieved higher revenue per employee. We should all own oil companies. Revenue per employee comment.

However financial service companies rely heavily on human as well as financial capital. What started out as a simple calculation has morphed into one of the better top line comparison indicators within industries. This industry usually takes more man hours to complete tasks which can lead to lower numbers. Revenue per employee fell on trailing twelve months basis ending 3 q 2020 for the services sector to 524 391 compare to twelve month period ending 2 q 2020 but remained above services sector average.

Fortune 500 companies average 300 000 per employee. This ratio gives an idea about how the company will perform in a specific quarter especially considering the revenue vs cost of each employee of the company. For larger companies it s usually closer to 200 000.