Operating income per employee

Operating income per employee is a financial metric that measures the amount of operating income generated by a company per employee in a year. Operating income represents the profit a company earns from its core business operations before interest and taxes are deducted. Dividing this figure by the number of employees provides insight into how efficiently the company is generating operating income relative to its workforce size.

Operating income per employee = Operating income / Number of employees

The result of this calculation provides the amount of operating income generated by each employee on an annual basis.

This metric helps assess the productivity and profitability of a company in relation to its workforce. A higher operating income per employee indicates that the company is efficient in generating income from its core operations per employee, which can be a positive indicator of operational efficiency and profitability. Investors can use this metric to compare companies within the same industry or sector to evaluate which companies are more effective in generating operating income relative to their workforce size.