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Printing & Packaging Industry Financial Ratios

Net Profit Per Factory Employee Ratio

Formula: Total Net Profit Dollars / Total Factory Employees

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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