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This ASX-listed company makes $5.7 million per employee

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Efficiency can be measured in many ways, but one very high-level indicator is how much revenue a company brings in per employee it hires.

Investment firm Clare Capital was kind enough to compile the ASX company numbers for The Motley Fool this week.

Because the 2020 financial year has not finished for many companies, the 2019 stats are our best guide.

Surprisingly, A2 Milk Company Ltd (ASX: A2M) has come out on top. It made a whopping $5.7 million per staff member.

It’s a shock result because sectors that produce highly scalable products and services, like technology, are usually expected to have high revenue-per-employee numbers.

Certainly over in the United States this holds true, with Netflix ruling the roost with $3.28 million of revenue per employee.

For an agricultural product company to come first in Australia is a testament to how well A2 Milk is going at the moment. 

Its shares have climbed from just above $14 at the start of the year to $17.29 at 12.25 pm AEST Monday.

The highest tech company is not one you’d think

Two finance companies then followed: Magellan Financial Group Ltd (ASX: MFG) and Challenger Ltd (ASX: CGF). They raked in $5.1 million and $5 million per employee, respectively.

AMP Limited (ASX: AMP), which has been rocked by both customer service and sexual harassment scandals in recent years, made $3.8 million per worker.

Company 2019 revenue 2019 headcount Revenue per employee
A2 Milk Company Ltd (ASX: A2M) $1.3 billion 228 $5.7 million
Magellan Financial Group Ltd (ASX: MFG) $643 million 125 $5.14 million
Challenger Ltd (ASX: CGF) $3.4 billion 687 $4.99 million
Beach Energy Ltd (ASX: BPT) $2.2 billion 483 $3.86 million
AGL Energy Limited (ASX: AGL) $13.8 billion 3586 $3.8 million
AMP Limited (ASX: AMP) $24 billion 6500 $3.78 million
Dicker Data Ltd (ASX: DDR) $1.8 billion 485 $3.49 million
Meridian Energy Ltd (ASX: MEZ) $3.5 billion 1001 $3.36 million
Sydney Airport Holdings Pty Ltd (ASX: SYD) $1.7 billion 508 $3.3 million
Australian Finance Group Ltd (ASX: AFG) $671 million 203 $3.06 million
Source: Clare Capital, table produced by author

The highest-ranked technology company is not one of the famous WAAAX shares.

It’s little-known distributor Dicker Data, which came in 7th. The Sydney company made $3.49 million per staff member.

The Dicker Data share price has enjoyed a handsome ascent over the past 18 months. It was around $3 in February last year, but now sits at $7.55 – all while paying a dividend yield of 4.39%.

And for the 2019 financial year, it remains as the only tech company among the highest-ranked revenue-per-employee players.

TPG Telecom Ltd (ASX: TPG) is the next best tech company, sitting at 32nd place with $1.8 million per employee.

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Motley Fool contributor Tony Yoo owns shares of A2 Milk, Dicker Data Limited, and Sydney Airport Holdings Limited. The Motley Fool Australia owns shares of and has recommended Challenger Limited and Dicker Data Limited. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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