Q: Where do I find a company's number of employees?
A: In the Business section, Item 1, of its annual report on Form 10-K, usually within the human capital discussion. Foreign filers typically disclose it in their Form 20-F.
Number of Employees
Metadata
- Category
- Ratios
- Units
- Count
- Reference
- Regulation S-K Item 101(c) (Description of business)
- Source
- Calculated by GeminIQ from figures reported in SEC filings
Definition
Number of employees is the count of people a company employs, as disclosed in its annual report. It is usually stated as of the end of the fiscal year and gives a direct measure of the size of a company's workforce.
It is not an accounting figure and does not appear in the financial statements. Companies report it in the narrative business section of the Form 10-K, typically alongside a discussion of their workforce.
Details
Regulation S-K Item 101(c), which governs the description of the business in a 10-K, requires a company to discuss its human capital resources, including the number of persons it employs, to the extent that information is material to understanding the business. An XBRL element exists for the count, EntityNumberOfEmployees in the SEC's document and entity information taxonomy, but many filers state the number only in the text of Item 1 rather than tagging it.
Because the rule is principles-based, companies do not all count the same way. Some report total headcount, some report full-time equivalents, and some break out full-time and part-time staff or employees by region. Contractors, temporary workers, and franchisee staff are generally not counted as the company's own employees, which is why a franchisor can report far fewer employees than the number of people working under its brand. The figure is a single point in time, so seasonal businesses that hire heavily for peak periods may report a count well below or above their average workforce.
Investors use employee counts to gauge operating scale and efficiency. Dividing revenue or operating income by the number of employees gives productivity measures that are useful for comparing companies in the same industry. Changes in headcount from year to year can also signal expansion, cost cutting, or the effect of an acquisition before those changes are fully visible in the income statement.
FAQ
Q: Do employee counts include contractors?
A: Generally not. Companies usually report people they employ directly. Practices vary, so check whether the figure is headcount or full-time equivalents and whether part-time staff are included.
Q: Why is the number of employees reported only once a year?
A: The count is required as part of the annual business description, not the quarterly financial statements. Some companies mention headcount changes in quarterly reports, but most update it only in the 10-K.
Related Terms
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