What Does Revenue Per Employee Mean?
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.

Filed Under: Formulas

Related Terms

Fundamental Analysis
Revenue
Revenue Per User
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Related Links

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.
Doing More With Less: The Sales-Per-Employee Ratio - If used properly, this ratio can give you insight into a company's productivity and financial health.

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