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What you really want to look at is net income per employee, which for MSFT is around $415k. Compare to Amazon with is iirc around $50k (just goes to show why so
by duped 5y ago
What you really want to look at is net income per employee, which for MSFT is around $415k. Compare to Amazon with is iirc around $50k (just goes to show why software-first businesses are so attractive to investors)
- efficax 5y agodepends how much net income is being reduced by capital investment costs... for example amazon has been bootstrapping its own version of fedex. They could probably raise net income in the short term by just using existing carriers, but they clearly think long-term profits will be improved by burning money on rolling out an entire internal logistics org.
- opportune 5y agoMicrosoft has a lot of vendors and contractors that aren’t technically employees but are, in an abstract sense, part of their workforce and payroll. Amazon also has a lot of contractors, but IIRC most of their warehouse employees (the vast majority by number) are FTE. Also I think Amazon has many multiples of Microsoft’s “employees” as a result. For sure software has big margins but I think there is a lot of nuance lost when looking at these gameable FTE counts
- duped 5y agoThat's why you look at net income and not revenue