Difference between revisions of "Revenue per employee"
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Revision as of 12:52, 2 February 2019
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.