Revenue per Employee (Entrepreneurial Finances) - Definition, Examples, Advice | Bolder Money

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Customer Lifetime Value Customer Lifetime Value

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Digital Payments Digital Payments

E-commerce Financing E-commerce Financing

Economic Value Added Economic Value Added

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Expense Reimbursement Expense Reimbursement

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Fixed Cost Fixed Cost

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Long-term Financing Long-term Financing

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Microloan Microloan

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Monthly Recurring Revenue Monthly Recurring Revenue

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Operating Cash Flow Operating Cash Flow

Operating Leverage Operating Leverage

Operating Margin Operating Margin

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Point-of-Sale System Point-of-Sale System

Pricing Strategy Pricing Strategy

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Profit Margin Profit Margin

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Profit Projection Profit Projection

Profit Reinvestment Profit Reinvestment

Profitability Analysis Profitability Analysis

Recurring Revenue Recurring Revenue

Resource Allocation Resource Allocation

Revenue Cycle Revenue Cycle

Revenue Diversification Revenue Diversification

Revenue Forecasting Revenue Forecasting

Revenue Growth Revenue Growth

Revenue Streams Revenue Streams

Revenue per Employee Revenue per Employee

Sales Forecasting Sales Forecasting

Sales Tax Sales Tax

Seed Funding Seed Funding

Short-term Financing Short-term Financing

Side Hustle Side Hustle

Small Business Administration (SBA)Small Business Administration (SBA)

Supply Chain Financing Supply Chain Financing

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Definition

Calculating the average money each worker brings in for the business. It’s a simple way to check productivity.

What to consider

Accurately calculate the cost of capital.
Use EVA to drive strategic investments.
Compare EVA over multiple periods for trend analysis.

Real world scenarios

A company in Chicago calculates EVA to determine if its operating profit exceeds the cost of capital.
An entrepreneur uses EVA to evaluate whether investments are truly adding value.
A small business reviews EVA as part of its annual performance analysis.

Related terms

Entrepreneurial Finances

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