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To: Road Walker who wrote (79131)	5/2/2002 6:53:15 PM
From: Joe NYC	Respond to of 275872

John, I think the best metrics for a shareholder to consider are profitability, growth and price you are paying for them (PE, PEG, ROE etc). Joe

To: Road Walker who wrote (79131)	5/2/2002 7:07:28 PM
From: Saturn V	Read Replies (1) \| Respond to of 275872

Ref < revenue per Employee > The metric for an economy is the Net Output [ GDP], divided by number of workers. This is a measure of the national productivity. However to extend that to a company is not proper. The correct metric for coporate productivity was Value Added per employee i.e [ Revenue - Cost of Goods and Services purchased]/ No of employees. However in this age of multinational manufacturing, even the value added per employee is not meaningful. If manufacturing operations are moved to a low wage country, and some of the cost savings are passed on the consumer, the value added per employee for the company will drop. However if the overseas operation is a separate corporate entity or a sub contractor, the value added per employee for the parent company becomes very high. Comparing companies based upon Revenue per employee can become a meaningless exercise.