Gross profit per employee (GP/employee)
Gross profit divided by the reported headcount.
It is a rough measure of how much value each person in the business creates above direct costs.
How it is computed here
Gross profit / employees
Measured over the latest complete fiscal year, as filed. Filed under quality. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- Headcount is reported once a year, inconsistently defined, and often excludes contractors and outsourced labour.
- Outsourcing improves this number without improving the business.
Questions
How is gross profit per employee calculated?
Gross profit / employees. Measured over the latest complete fiscal year, as filed.
What does gross profit per employee tell a value investor?
It is a rough measure of how much value each person in the business creates above direct costs.
When does gross profit per employee mislead?
Headcount is reported once a year, inconsistently defined, and often excludes contractors and outsourced labour. Outsourcing improves this number without improving the business.