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revenue per employee

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Financial Dictionary

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 Commentary

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 Links

Ratio Analysis Tutorial
Doing More With Less: The Sales-Per-Employee Ratio

See also: Fundamental Analysis, Revenue, Revenue Per User

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