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23 November 2018
By Maynard Paton
One of my favourite ways of assessing companies is by calculating their turnover per employee.
The theory is simple: companies that produce high sales from few people are often simpler to manage and grow than businesses that produce low sales from many people.
In fact, if you can find a business that can expand significantly without needing to take on huge numbers of extra staff, then perhaps you have found a business with a product that actually sells itself.
Suffice to say, companies blessed with products that sell themselves are generally good for us investors!
Let’s now use SharePad to investigate Warpaint London — a cosmetics business with high sales per employee.