Revenue Vs Number Of Employees

From the table above and with only revenue and employee figures available we conclude that company b is the most efficiently productive company since its rpe is.

Revenue vs number of employees. Request a free industry report. Your industry has a benchmark that you can get from others in your industry or from one of the cfowise partner s business dashboards. The most common quantitative measures to determine if you have the right number of employees are revenue per employee benchmarks. Businesses calculate revenue per employee by dividing total revenue by total number of employees.

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. If they begin working on a new product line and hire an additional 25 employees based on the same revenue their revenue per employee ratio will be 100 000 annually. If a company employs 50 people and has a revenue of 7 5m annually their revenue per employee ratio is 150 000 on an annual basis. Through the use of the revenue per employee ratio a company can determine efficiency and use that assessment to make adjustments to operations high revenue per employee indicates that a company has found additional ways to obtain more sales from each employee.

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 employs 50 people and has a revenue of 7 5m annually their revenue per employee ratio is 150 000 on an annual basis.