Dear Friends, Can somebody please tell me the relevance of calculating EBITDA per employee ? Regards, Natasha
From India , Delhi
Earnings Before Interest, Taxes, Depreciation and Amortization or EBITDA will tell how much a company makes a profit[ earning] before deductions like I,T,D & A.
EBITDA per employee will throw a clear picture how much profit each employees earn. Thus an increasing trend of EBITDA /employee will be a good measure of company's growth in general , bottomline in particular.
Regards
Sathya Iyer, Voltas

From India , Madras
Hello Sathya,
Thanks a lot for the reply...the concept is more clear to me now...but would need one more help from your side...it would be great if you could tell me how do we do the calculation for this ratio!
Thanks and regards,
Natasha

From India , Delhi
This is a productivity barometer and specially useful for HR team . It helps in planning the manpower strength of company and establish a corelation between the manpower and productivity. You would also find that a multiproduct company which publishes segmental results as different result for each segment.
It is computed as follows: EBITDA per Employee = ( EBITDA / No of employees). You may refer to latest quarterly results of Airtel to get an understanding of EBITDA per employee published by Company and it has a wide variation between mobile, broadband and International Business.
CA Sanjoy Banka

From India , New Delhi

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