Revenue per employee (Rev/employee)
Annual revenue divided by the reported headcount.
It is a coarse but honest measure of how labour-intensive the business is.
How it is computed here
Revenue / 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 and defined inconsistently across jurisdictions.
- Outsourcing improves the ratio without improving the business.
- There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading.
Questions
How is revenue per employee calculated?
Revenue / employees. Measured over the latest complete fiscal year, as filed.
What does revenue per employee tell a value investor?
It is a coarse but honest measure of how labour-intensive the business is.
When does revenue per employee mislead?
Headcount is reported once a year and defined inconsistently across jurisdictions. Outsourcing improves the ratio without improving the business. There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading.