Free cash flow per employee

Free cash flow per employee is a financial metric that measures the amount of free cash flow generated by a company per employee on an annual basis. Free cash flow represents the cash a company generates from its operations after accounting for capital expenditures. Dividing this figure by the number of employees provides insight into how efficiently the company is generating cash relative to its workforce size.

Free cash flow per employee = Free cash flow / Number of employees

This metric helps evaluate how productive a company is in generating cash flow per employee. A higher free cash flow per employee indicates that the company is efficient in utilizing its workforce to generate cash, which can be a positive indicator of operational efficiency and profitability. It can also be used to compare companies within the same industry or sector to assess which companies are more effective in generating cash flow relative to their workforce size.