Definition§
The Fortune 500 is an annual ranking published by Fortune magazine that lists the 500 largest U.S. industrial (manufacturing) corporations based on revenue. In addition, Fortune publishes the Fortune Service 500, which ranks the 500 largest U.S. nonmanufacturing companies. These rankings are highly regarded and provide significant insight into the financial robustness and market performance of American corporations.
Forbes magazine also publishes annual rankings of the 500 biggest U.S. publicly owned corporations, offering a complementary perspective to the Fortune 500 listings.
Examples§
Here are a few examples of companies that have consistently appeared on the Fortune 500 list:
- Walmart Inc.: Frequently topping the list due to its massive revenue from retail operations.
- Amazon.com Inc.: Known for its extensive e-commerce, cloud computing, and digital streaming services.
- Apple Inc.: Renowned for its consumer electronics, software, and online services.
- Exxon Mobil Corporation: A leading company in the oil and gas industry.
Frequently Asked Questions (FAQs)§
What criteria are used for ranking companies in the Fortune 500?§
Companies are ranked based on their total revenue for the fiscal year, including gross sales and other income sources.
How often is the Fortune 500 list updated?§
The list is updated annually.
Is the Fortune 500 ranking limited to a specific industry?§
The Fortune 500 primarily focuses on industrial (manufacturing) corporations, while the Fortune Service 500 ranks nonmanufacturing companies.
What is the difference between the Fortune 500 and the Fortune Global 500?§
The Fortune 500 lists the largest U.S. corporations by revenue, whereas the Fortune Global 500 ranks the largest companies worldwide based on revenue.
Can a new company appear on the Fortune 500 list?§
Yes, any U.S. company that meets the revenue criteria within a fiscal year can appear on the list.
Related Terms§
- Fortune Global 500: A ranking of the top 500 corporations worldwide, as measured by revenue.
- Forbes Global 2000: An annual ranking of the world’s top 2000 public companies by Forbes magazine, based on a mixture of revenue, profit, assets, and market value.
- S&P 500: An index comprising 500 of the largest publicly traded companies in the United States, often used as a benchmark for the overall stock market.
Online References§
Suggested Books for Further Studies§
- “Inside The Fortune 500: How the World’s Largest Companies Achieve Success” by Tommy Oliver.
- “Good to Great: Why Some Companies Make the Leap…And Others Don’t” by Jim Collins.
- “Built to Last: Successful Habits of Visionary Companies” by Jim Collins and Jerry I. Porras.
- “The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail” by Clayton M. Christensen.
Fundamentals of Fortune 500: Management Basics Quiz§
Thank you for exploring the complexities and features of the Fortune 500 ranking. Your understanding of corporate rankings helps to grasp the financial environment’s dynamics.