DEFINITION of 'Revenue Per Employee'
An important ratio that looks at a company's sales in relation to the number of employees they have. It is calculated as:
INVESTOPEDIA EXPLAINS 'Revenue Per Employee'
This ratio is most useful when compared against other companies in the same industry. Ideally, a company wants the highest revenue per employee possible, as it denotes higher productivity.
RELATED TERMS

Revenue Per User  RPU
A ratio used to express the profitability of a company on a peruser ... 
Revenue
The amount of money that a company actually receives during a ... 
Fundamental Analysis
A method of evaluating a security that entails attempting to ... 
Investment Income Ratio
The ratio of an insurance company’s net investment income to ... 
Return On Investment  ROI
A performance measure used to evaluate the efficiency of an investment ... 
Return On Capital Employed (ROCE)
A financial ratio that measures a company's profitability and ...
Related Articles

Fundamental Analysis
Ratio Analysis Tutorial
If you don't know how to evaluate a company's present performance and its possible future performance, you need to learn how to analyze ratios. 
Investing
Doing More With Less: The SalesPerEmployee Ratio
If used properly, this ratio can give you insight into a company's productivity and financial health. 
Investing
What is the DebtToCapital Ratio?
The debttocapital ratio is used to measure a company’s use of financial leverage. The ratio is the company’s total debt, divided by the sum of the company’s equity plus total debt. 
Fundamental Analysis
Understanding the Capital Adequacy Ratio
The capital adequacy ratio (CAR) is an international standard that measures a bank’s risk of insolvency from excessive losses. Currently, the minimum acceptable ratio is 8%. Maintaining an acceptable ... 
Fundamental Analysis
Efficiency Ratio
There are many types of efficiency ratios, but all measure how well a company utilizes its resources to make a profit. Business managers use these ratios to determine how well they are operating ... 
Fundamental Analysis
Cash Flow From Financing Activities (CFF)
Cash flow from financing activities is typically the third and final section of the statement of cash flows. It shows changes to cash resulting from activities such as issuing stocks and bonds ... 
Fundamental Analysis
How Do I Calculate the PriceEarnings Ratio?
If Apple is trading at $108.73 per share, and its trailing twelve months' EPS is $6.45, calculate the P/E ratio as... 
Investing Basics
What's the Rate of Return?
Rate of return is the earnings an asset generates in excess of its initial cost. The amount is usually expressed as an annualized percentage rate. Rate of return can be calculated based on the ... 
Fundamental Analysis
Equity Multiplier
The equity multiplier is a straightforward ratio used to measure a company’s financial leverage. The ratio is calculated by dividing total assets by total equity. 
Investing
Use the BooktoMarket Ratio
The booktomarket ratio compares the book value of a company to the market value of that same company.