Revenue per employee

What is Revenue per employee?

Revenue per employee is a metric that shows how much revenue each employee, on average, brings to a company.

Formula:

Revenue / Total employee

What does Revenue per employee mean?

A high Revenue per employee indicates that the company effectively uses its human resources, new hires, and existing employee base to generate revenue. This metric should be compared for companies from the same sector and industry. Typically, companies with a high Revenue per employee are seen as more efficient and better run than companies with low Revenue per employee.

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