Revenue per Employee

Discussion in 'Trading' started by misterkel, Jul 10, 2022.

  1. Anybody know how and where to run a scan for this metric?
    It's not on finviz, but it seems useful as part of analytics.
     
  2. newwurldmn

    newwurldmn

    Why would this be relevant?
     
    ET180 and rb7 like this.
  3. ET180

    ET180

    Not sure, but if you want to make that metric look good, then have as few employees as possible and outsource as much work as possible to other firms.
     
  4. Nobert

    Nobert

    Found this gem. Bahamas.

    Screenshot (93).png
    Market cap $400M or smthn.

    And if the liquidity is a problem, no worries, could be worse, -

    Screenshot (31).png
     
  5. xandman

    xandman

    Think about what Revenue per Employee means to you. Is it a measure of productivity or a proxy measure of Operating Leverage? Kinda both, right? But, which concerns you more?

    There are families of alternative ratios that say the same thing. Please consult Security Analysis by Graham and Dodd which I remember to have categorized them. And, please come back to enlighten us with your findings.

    imho, these factors are coming to a head in this economic environment.
     
  6. SunTrader

    SunTrader

    Seems with small caps, especially tech and biotech types this number might fluctuate wildly, no?
     
  7. newwurldmn

    newwurldmn

    There are more direct ways off understanding that.

    Revenue per employee is a meaningless number. Manufacturing and retail have low revenues/employee but they pay employees poorly. Investment banks have high revenues per employee, but the employees get like 40% of the net.

    Even profit per employee is meaningless. Who care if you earn $1 with 1 person (already paid for) or $1 with 2 people (already paid for). Your company is still worth the same.
     
  8. vanzandt

    vanzandt

    ?
    Ford rev/emp $745K
    JPM rev/emp $483K
     
    xandman likes this.
  9. newwurldmn

    newwurldmn

    fair point. JPM doesn't package two tons of steel with their derivatives trades.
     
  10. vanzandt

    vanzandt

    I did look at GS too. They are $1.3M per employee.
    I think that might be the highest I have ever seen.
     
    #10     Jul 11, 2022