Operating profit per employee

From ACT Wiki
Jump to: navigation, search

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.

See also