Net income per employee
Encyclopedia
Net Income per Employee or Revenue per employee is a company's net income
divided by the number of employees. In general, the higher the number, the more efficient the company uses its employees, however the numbers are only directly comparable when comparing companies of a very similar nature. There are no rules about what constitutes a good level of income per employee, or a bad level.
Net income
Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period. Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings...
divided by the number of employees. In general, the higher the number, the more efficient the company uses its employees, however the numbers are only directly comparable when comparing companies of a very similar nature. There are no rules about what constitutes a good level of income per employee, or a bad level.
See also
- Net incomeNet incomeNet income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period. Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings...
- Operating incomeEarnings before interest and taxesIn accounting and finance, earnings before interest and taxes is a measure of a firm's profit that excludes interest and income tax expenses. Operating income is the difference between operating revenues and operating expenses...
- Economic value addedEconomic value addedIn corporate finance, Economic Value Added or EVA, a registered trademark of Stern Stewart & Co., is an estimate of a firm's economic profit – being the value created in excess of the required return of the company's investors . Quite simply, EVA is the profit earned by the firm less the cost of...
- Gross incomeGross incomeGross income in United States tax law is receipts and gains from all sources less cost of goods sold. Gross income is the starting point for determining Federal and state income tax of individuals, corporations, estates and trusts, whether resident or nonresident."Except as otherwise provided" by...
- Earnings growthEarnings growthEarnings growth is the annual rate of growth of earnings from investments.-Overview:Generally, the greater the earnings growth, the better.When the dividend payout ratio is the same, the dividend growth rate is equal to the earnings growth rate....