Financial Metrics
9 articles
EBITDA
EBITDA strips out financing costs, tax, and noncash charges to reveal the underlying operating performance of the agency. Because recruitment businesses are usu…
Adjusted EBITDA
Adjusted EBITDA is EBITDA after "normalisation" adjustments that remove unusual income or expenditure and reflect a postsale cost base. Common adjustments inclu…
Net Profit (Profit After Tax)
Net profit represents the "bottom line" remaining for shareholders once all operating expenses, interest, tax and noncash charges have been deducted. While net …
Gross Profit
Gross profit equals revenue less the direct cost of sales (principally contractor payasyouearn costs for temp / contract desks and commission on perm placements…
Net Fee Income (NFI)
Also called "net revenue", NFI is the recruiter's gross profit expressed before overheads. Permanent fees are already net, whereas contract NFI equals margin (c…
Permanent Fee Income
Permanent (perm) income comprises oneoff placement fees, typically expressed as a percentage of candidate salary. High perm dependency can produce lumpy earning…
Contract Margin
Contract margin is the absolute value or percentage retained on each hour or day billed for contractors and temps. It reflects payrate discipline, sector norms …
Revenue
Topline turnover for recruiters includes the full chargeout rate for contractors plus perm fees invoiced. Because contract revenues include large passthrough wa…
Recurring Revenue
In recruitment, recurring revenue generally refers to ongoing contract or RPO (Recruitment Process Outsourcing) engagements where income repeats predictably wit…