Changes in labor productivity
factor.formula
Per capita revenue growth rate (TTM):
Revenue per capita (TTM):
Average total number of employees:
The factor calculation process consists of three steps to measure the improvement of a company's labor productivity. First, the current rolling 12-month (TTM) per capita revenue and the per capita revenue of the same period last year are calculated; then, the improvement in labor efficiency is quantified by the percentage change in per capita revenue.
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The current point in time is the average operating income per capita for the Trailing Twelve Months (TTM).
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Revenue per capita in the same period last year (usually refers to the past 12 months that are the same as the current rolling 12-month period).
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The total operating income for the current rolling 12 months (TTM).
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The total number of employees at the beginning of the reporting period.
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The total number of employees at the end of the reporting period.
factor.explanation
The revenue growth rate per employee (TTM) reflects the growth of the revenue generated by each employee in the past year. The higher the index is, the more efficient the company is in utilizing its labor resources and the stronger its management ability is. This factor can be used to evaluate the operating efficiency and profitability of a company, and is of great significance when comparing different companies horizontally or analyzing the operating conditions of the same company in different periods vertically. It is worth noting that this factor cannot be used as an investment basis alone, and should be combined with other financial indicators and industry background for comprehensive analysis.