what are fortune 500 companies

what are fortune 500 companies

1 year ago 42
Nature

The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the 500 largest corporations in the United States by total revenue for their respective fiscal years. The list includes both publicly held companies and privately held companies for which revenues are publicly available. The concept of the Fortune 500 was created by Edgar P. Smith, a Fortune editor, and the first list was published in 1955. The Fortune 500 is more commonly used than its subset Fortune 100 or superset Fortune 1000. As of 2020, the Fortune 500 companies represent approximately two-thirds of the United States gross domestic product with approximately $14.2 trillion in revenue, $1.2 trillion in profits, and $20.4 trillion in total market value.

To qualify for the Fortune 500 list, a company must be headquartered in the United States, publicly traded, and have reported revenue for the previous fiscal year. Companies on the list come from a variety of sectors, such as technology, retail, healthcare, and finance. These companies are known as some of the most influential in the world, and the list includes both privately-held and publicly-traded companies. The Fortune 500 list can be found online and in the print edition of the magazine.

In addition to the Fortune 500, there is also the Fortune Global 500, which ranks the top 500 multinational companies in the world by revenue. The Fortune Global 500 uses the same ranking metrics as the Fortune 500, most importantly annual revenue based on public-facing reporting. The Fortune Global 500 can be insightful for investors, especially those looking to diversify their portfolios with more global companies.

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