What Does Sales Per Labor Hour Mean?
Sales per labor hour is a measure of how much revenue a business generates for each hour of labor expended. It is calculated by dividing the total sales of the business by the number of labor hours worked during the same period of time. This metric is often used by businesses to determine the productivity and efficiency of their employees, as well as to gauge the overall profitability of the company. A higher sales per labor hour indicates that the business is generating more revenue with fewer labor hours, which is a positive indicator of effective labor management.