What is per?

Per, in the context of business and finance, is a Latin preposition meaning "by" or "through". It is commonly used to express a rate, ratio, or proportion in relation to a specific unit or quantity. Understanding how "per" is used is crucial for interpreting financial data and making informed decisions.

Here are some key areas where "per" is frequently used:

  • Per Share Metrics: This often refers to metrics calculated on a per-share basis, such as Earnings Per Share (EPS), which shows a company's profitability allocated to each outstanding share of common stock. Another important metric is book value per share.

  • Per Unit Cost: This indicates the cost associated with producing one unit of a product or service. Analyzing Per Unit Cost is essential for determining profitability and pricing strategies.

  • Revenue Per Employee: Measures how much revenue each employee generates for the company. This helps assess Revenue Per Employee efficiency and productivity.

  • Growth Rates (e.g., per annum): Used to express annual growth rates, such as revenue growth per annum, meaning per year. Understanding growth rates per annum helps understand the pace of expansion.