Revenue per FTE Calculation
This metric shows your company’s profit generated per employee during a period. A higher value for this KPI indicates an effective workforce for your company.
Like the other KPIs, the values for this KPI update when you change the subsidiary. When you switch subsidiaries, the calculated value uses that subsidiary’s currency.
The annual data for the current month covers from the same month last year up to today. For example, if today is March 5, 2024, the data covers March 6, 2023 to March 5, 2024.
NetSuite calculates the revenue per FTE annually using the following formula:
|
Revenue per FTE |
= |
Revenue / Average Number of Active Employees |
The revenue comes from the Income and Other Income accounts. The average number of active employees is calculated using the following formula:
Average Number of Active Employees = (Running Total from the Previous Year plus 1 day + Running Total Today) / 2
For example, Company A’s revenue in 2023 is $3,500,000 and their total FTEs for the same year is 150. The annual revenue per FTE is calculated as:
|
Revenue per FTE |
= |
$3,500,000/ 150 |
|
|
= |
$23,333 |