Recently reports surfaced about SAP SE executing a series of layoffs, prompting scrutiny into the company’s financials and its capacity to provide pay raises for its workforce. Let’s delve into the numbers and explore what the data reveals.
In 2023, SAP SE (SAP) reported significant financial figures:
– Revenue: $33.776 billion
– Gross Profits: $24.387 billion
– Number of Employees: 107,602
– Corporate Tax Rate: 21%
– Corporate Taxes Paid: $5.121 billion
Based on these figures, the post-tax balance for SAP SE was $19.265 billion. If the company were to allocate 20% of this post-corporate income tax profits, termed as an “employee entitlement,” evenly among its workforce, each employee would receive a pay raise of approximately $35,809.24.
However, it’s crucial to note that SAP SE’s actual corporate income tax payment in 2023 was lower than the expected 21%. With corporate taxes amounting to $1.884 billion, the post-tax balance stood at $22.502 billion. Under this scenario, the employee entitlement would increase to $4.5 billion, resulting in a higher pay raise per employee of approximately $41,825.83.
The concept of “Corporate Entitlement” and “Employee Entitlement” is hypothetical, where 80% of post-corporate income tax profits are at the company’s disposal, while 20% is allocated exclusively for employee pay raises.
These figures shed light on SAP SE’s financial capacity to provide pay raises for its workforce, showcasing the potential impact on employee compensation amidst reports of layoffs. For further details and financial analysis, refer to the source link below.
Source:https://macrotrends.net/stocks/charts/SAP/sap-se/revenue
