Revenue per employee

Financial ratio analysis.

Revenue per employee is a management efficiency ratio.

It measures the annual revenue generated per full time equivalent employee (taking account of any part time working).

It is calculated as:

Revenue ÷ number of full time equivalent employees

The greater the revenue per employee, the greater the efficiency with which employees are being used to generate sales, though not necessarily profits.

See also

• Management efficiency ratio
• Operating profit per employee
• Revenue