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.
Similar with other KPIs, the values on the graph for this KPI change when you change the subsidiary. When you change the subsidiary, the calculated value follows the currency set for your subsidiary.
The scope of annual data shown for a current month runs from the same month of the previous year up to the current date of the month of the current year. For example, the current date is March 5, 2024. The days covered for this period is from 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 |