Net income per employee

What is Net income per employee?

Net Income Per Employee is a metric that shows approximately how much net income, on average, each company employee brings to the company.

Formula:

Net income / Total employee

What does Net income per employee mean?

A high Net income per employee indicates that the company effectively uses human resources to generate net profit. Since production costs may vary, depending on the type of activity, this metric should be compared to other companies from the same sector and industry.

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