Factor shares

Factor shares refer to the portion of a company’s profits attributed to different production inputs or factors, such as labor, capital (like equipment or investments), and sometimes other resources. Essentially, they help us understand how much of the company’s value or earnings is generated by each factor. For instance, if workers are highly productive, a larger share of profits might be seen as attributable to labor. Analyzing factor shares provides insights into the roles different inputs play in a company's success and how income is distributed among owners, workers, and investors.