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Does anyone know an easy way to derive a Cost/$ of profit for various tech companies based upon reasonable estimates of how many engineers of whatever salary th
by otakucode 9y ago
Does anyone know an easy way to derive a Cost/$ of profit for various tech companies based upon reasonable estimates of how many engineers of whatever salary they've got? Obviously it would be a rough estimate, but it would be interesting to see, if only within an order of magnitude, just how terribly the cost center of software engineering is destroying their earnings.
- lloyd-christmas 9y agoFor some baseline comparison, salaries usually account for 20-30% of revenue for a company (not profit). Netflix employs about 3500 people, with a revenue of ~$11b. That ratio would put the average salary at 630k - 940k.
- user5994461 9y agoThis simple formula doesn't hold for super profitable business like netflix. They can't spend the money they get fast enough.
- majani 9y agoNetflix is super profitable? According to what accounting methods?
- user5994461 9y agoAccording to 1M+ revenues per employees and the billions they have in the bank.