Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Per Capita

What it is:

Per capita measures help analysts and investors get a better feel for whether a company, country, or other entity is productive, efficient, or profitable. For instance, the per capita measure of GDP indicates whether the country’s workforce is generally becoming more or less productive – that is, whether the country’s workforce is efficiently producing goods and services that consumers want.

How it works (Example):

For example, per capita GDP is a country’s gross domestic product (GDP) per person. The formula for per capita GDP is:

Per Capita GDP =Gross Domestic Product/Population

So, let's assume that Country XYZ has $100 trillion in gross domestic product and 250 million people. According to the formula, Country XYZ's net debt per capita is:

Per Capita GDP = $100,000,000,000,000/250,000,000 = $400,000
 

Why it Matters:

Per capita  is a measure of a quantity per person.