Financial ratios

Net income per employee

Net Income per employee (NIPE) is a company's net income divided by the number of employees. This number shows the company how efficient it is with its employees. Theoretically, the higher the net income per employee the better. Aside from increasing the productivity of employees, this number could be increased by a number of other factors. The company can become more efficient by using better and more advanced technology than before. The company could also have released a commercially successful product, that they made huge profits off of. However, there are way in which the NIPE could be increased directly from the employees. This could be from employees getting a higher education or having better skill sets in their particular job. Some factors could also decrease the NIPE in a company. This could happen when a company has a high turnover ratio. When a lot of valuable employees quit their job, the company will have to hire new employees to fill the spots. These new employees will have to be trained first, which will make the company less efficient in the meantime. The NIPE is usually used to compare companies in the same industry. This is because some businesses sectors need more employees by nature, to drive their revenue and profits, than other sectors. Banks for instance need many employees which means that their NIPE could be lower than that of a Skittles factory. However, this does not mean that the Skittles factory makes more money than the bank. There are no rules about what constitutes a good level of income per employee, or a bad level. The NIPE, in no way at all, shows how profitable or successful a company is. According to Lowell Bryan writing in the McKinsey Quarterly, "To boost the potential for wealth creation, strategically minded executives must embrace a radical idea: changing financial-performance metrics to focus on returns on talent rather than returns on capital alone." This means that a company should not solely look at the profit that is created from investor's capital, but also by the profit that is gained by the talent of the employees that work in the company and turn the capital into such profits. (Wikipedia).

Video thumbnail

Federal Tax Basics - Social Security Taxes

In this video, we look at the basics of social security taxes

From playlist Personal Finance

Video thumbnail

How to Research Salary Information

In this video, you’ll learn more about researching salaries. Visit https://www.gcflearnfree.org/careerplanningandsalary/salary-basics/1/ for our text-based lesson. This video includes information on: • The importance of researching salary information • Salary research resources • Comparin

From playlist Find Your Value

Video thumbnail

StatCrunch Normal Probability Harder Example

Please Subscribe here, thank you!!! https://goo.gl/JQ8Nys StatCrunch Normal Probability Harder Example

From playlist StatCrunch

Video thumbnail

Exploring Salaries with Online Tools

We're going to look at a few online tools you can use to estimate salaries for different jobs. While these tools aren't perfect, they can be a good place to start gathering info about jobs and career paths. Because the data may not always be accurate, you should take these numbers with a

From playlist Searching for a Job

Video thumbnail

Personal Finance Quiz 0 Question 14

These videos cover questions from one of assessments. It covers basics in federal, state, medicare and social security taxes and how them impact monthly income. IT also covers the idea of micro-finance. To see our other personal finance videos, go here: https://www.youtube.com/playlist?li

From playlist Personal Finance

Video thumbnail

Prob & Stats - Random Variable & Prob Distribution (24 of 53) Mean, Median, Mode Ex. 4

Visit http://ilectureonline.com for more math and science lectures! In this video I will find the mean, median, and mode of the wages of 340 employees. Next video in series: http://youtu.be/OOLYgTMP0mY

From playlist iLecturesOnline: Probability & Stats 2: Random Variable & Probability Distribution

Video thumbnail

Deductions and Net Income (1 of 2: Introduction to levels of Health Insurance)

More resources available at www.misterwootube.com

From playlist Money Matters

Video thumbnail

Federal Tax Basics - 112200 Gross Income

In this video, we get a basic sense of federal taxes by looking at an income over 100 thousand along with a standard deduction.

From playlist Personal Finance

Video thumbnail

Excel & Business Math 36: Comprehensive Excel Payroll Example: SUMIFS, MROUND, MOD, VLOOKUP & More

Download Start Excel File: https://people.highline.edu/mgirvin/AllClasses/135NoTextBook/Content/05BankingPayroll/ExcelBusinessMathVideo36ComprehensivePayroll.xlsx Download pdf Notes: https://people.highline.edu/mgirvin/AllClasses/135NoTextBook/Content/05BankingPayroll/ExcelBusinessMathVide

From playlist Excel Payroll & Time Tricks

Video thumbnail

Team 4892 Maggie Walker Presentation 2015

Maggie Walker Governor's School presents at the 2015 Moody's Mega Math Challenge. 1,125 teams of more than 5,000 high school students from across the U.S. used mathematical modeling to answer the question: Is college worth it? Using publicly available data on college tuition rates, schola

From playlist M3 Challenge

Video thumbnail

Lecture 20: Public Finance (Part 3)

MIT 14.771 Development Economics, Fall 2021 Instructor: Ben Olken View the complete course: https://ocw.mit.edu/courses/14-771-development-economics-fall-2021 YouTube Playlist: https://www.youtube.com/playlist?list=PLUl4u3cNGP61kvh3caDts2R6LmkYbmzaG Concludes discussion of redistributi

From playlist MIT 14.771 Development Economics, Fall 2021

Video thumbnail

Trump Taxes Analyzed & Explained

The New York Times obtained more than two decades of President Trump’s tax information, finding that Trump paid $750 in federal income tax in 2016 and 2017. The president called the report “fake news” and said he has been “under audit for a long time.” Here is a link to the New York Times

From playlist What is Happening In The Market?

Video thumbnail

Accounting Lecture 17 - Corporate Income Statement

From the free study guides and course manuals at www.my-accounting-tutor.com. Introduction to the corporate income statement, including income from continuing operations, restructuring charges, fixed asset impairments, extraordinary gains and losses, and results from discontinued operation

From playlist Accounting Lectures

Video thumbnail

Mod-07 Lec-18 Financial Statements Analysis - Dabur India Case

Managerial Accounting by Dr. Varadraj Bapat,Department of Management,IIT Bombay.For more details on NPTEL visit http://nptel.ac.in

From playlist IIT Bombay: Managerial Accounting | CosmoLearning.org Accounting

Video thumbnail

How Self Storage Thrives Off The American Dream

Start your business today with a free trial of Shopify - go to https://www.shopify.com/modernmba to learn more. Self-service storage is an American phenomenon. While self-storage facilities exist in Europe and Asia, the business overseas does not come close to the scale and demand in the

From playlist Season 2

Video thumbnail

How The Dutch Economy Shows We Can't Reduce Wealth Inequality With Taxes | Economics Explained

This video was made possible by our Patreon community! ❤️ See new videos early, participate in exclusive Q&As, and more! ➡️ https://www.patreon.com/EconomicsExplained ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ The Economic Explained team uses Statista for conducting our research. Check out their YouTube

From playlist Countries Economies Explained

Video thumbnail

Profit Margin, Gross Margin, and Operating Margin - With Income Statements

This finance video tutorial explains how to calculate the net profit margin, the gross profit margin, and operating profit margin of a company given an income statement. This video includes many examples and practice problems that will help you to learn the concept. My Website: https://

From playlist Stocks and Bonds

Video thumbnail

Fundamental Analysis

This video explains how to use fundamental analysis to determine if a company may be undervalued or overvalued by using valuation ratios such as the price to book ratio, price to sales, & price to earnings ratio. It also explains how to determine if a company may go bankrupt using the deb

From playlist Stocks and Bonds

Related pages

Economic value added