The Net Profit per Factory Employee ratio shows the relationship between the Net Profit dollars generated and the number of factory employees ithin the firm. A high number associated with this ratio indicates that a firm is efficiently utilizing resources, in this case, their human capital. A Net Profit per Factory Employee number that is lower than leaders within the industry may indicate that there are inefficiencies in regards to staffing or the utilization of employees. This can come from there being too many employees, under/overstaffed departments, or many other systemic issues within the firm.
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Example Printing Industry Financial Ratios Current Ratio Quick Ratio (Acid Test Ratio) Cash Asset Ratio Days Cash For Operating Expenses Ratio Net Profit Per Factory Employee Ratio |
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