Profit per employee is a ratio that is calculated as a company’s profit divided by its current number of employees. It is a rough measure of how much profit each employee generates for the firm. This ratio is most useful when comparing it against other companies in the same industry, or looking at changes in a company’s own figure over time. Ideally, a company wants the highest profit per employee possible, because it indicates higher productivity and effective use of the firm’s resources.
One of the largest expenses for a company is salary and benefits for the workforce, and profitable companies leverage the investment in people by developing workers who are very productive. This is sometimes known as investment in human capital. Helping workers operate productively is similar to asset utilization, an accounting term measuring how well a company uses capital assets to grow revenue.
Here are the top 10 companies with the highest profit per employee in the world.
Profit per employee
Taiwan Semiconductor Manufacturing
Goldman Sachs Group