Income Per Employee Vs Revenue Per Employee

Net income per employee nipe is a company s net income divided by the number of employees.

Income per employee vs revenue per employee. Additionally take a look at world market map. For larger companies it s usually closer to 200 000. Revenue vs income revenue vs income revenue vs income. Use and relevance of revenue per employee formula other similar ratios.

Revenue per employee is relevant for labor intensive industries i e. We encourage investors to analyze account correlations over time for multiple indicators to determine whether mgic investment is a good investment. There are other similar ratios which are calculated by dividing net income instead of revenues from the number of employees to try and see how a company fares in terms of employee based productivity. Fortune 500 companies average 300 000 per employee.

Income can sometimes be used to mean revenue or net income. Let s also take the example of apple inc. Calculate the revenue per employee ratio for apple inc. Industries in which human capital is more important than the physical capital for revenue generation.

A similar ratio is net income per employee which measures net income earned by each employee on average. Oil companies generate over 2 000 000 in revenue per employee. In order to illustrate the computation of the rpe ratio. If a company employs 50 people and has a revenue of 7 5m annually their revenue per employee ratio is 150 000 on an annual basis.

In this ratio they replace revenue with net income. During 2018 apple inc. If they begin working on a new product line and hire an additional 25 employees based on the same revenue their revenue per employee ratio will be 100 000 annually. The average small business actually generates about 100 000 in revenue per employee.

Please check the relationship between mgic investment net income per employee and its revenue per employee accounts. Aside from increasing the productivity of employees this number could be increased by a number of other factors. This guide provides an overview of the main differences between revenue vs income. Please check the relationship between square net income per employee and its revenue per employee accounts.

Theoretically the higher the net income per employee the better. This number shows the company how efficient it is with its employees. We encourage investors to analyze account correlations over time for multiple indicators to determine whether square inc is a good investment. Companies with high revenue per employee ratios are often profitable.

Revenue is the sales amount a company earns from providing services or selling products the top line. Jpmorgan makes an annual revenue of 403 485 per employee.