Operating profit per employee: Difference between revisions
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Latest revision as of 11:51, 6 February 2019
Financial ratio analysis.
Operating profit per employee is a management efficiency ratio.
It measures the annual operating profits generated per full time equivalent employee (taking account of any part time working).
It is calculated as:
Operating profit ÷ number of full time equivalent employees
The greater the operating profit per employee, the greater the efficiency with which employees are being used to generate operating profits.
