The Fortune 500 list is made each year by Fortune magazine. It ranks the 500 biggest U.S. companies by their total revenues. This list started in 1955 and has various types of businesses like tech, retail, health, and finance1. Big names such as Walmart, Amazon, and Apple show their power and role in the industry by being at the top2.
Being part of the Fortune 500 is a big deal. It shows a company’s success and influence. For instance, in 2024, Walmart was number one with $648 billion in revenue2. This spot means the company isn’t just making a lot of money. It is also a big player in the economy1.
Key Takeaways
- The Fortune 500 list ranks the top 500 U.S. firms by total revenue2.
- Walmart has held the top spot for the 12th consecutive year in 2024 with $648 billion in revenue2.
- Amazon and Apple also lead the 2024 list, with revenues of $575 billion and $383 billion respectively2.
- The List includes a diverse range of sectors, illustrating broad economic impact1.
- The Fortune 500 list has been published annually by Fortune magazine since 19551.
Introduction to the Fortune 500
The Fortune 500 is a yearly list from Fortune magazine. It ranks the 500 largest U.S. companies by their revenue from the last year3. This list is important because it shows how well these companies are doing. It mirrors the condition and trends of the American economy.
Definition and Importance
To understand the Fortune 500, you need to know what it means in the business world. Companies must be U.S.-based, active in the country, and share their finances openly to be listed3. This prestigious ranking is known worldwide. It gives insight into the strength of U.S. businesses. The list points out the importance of the Fortune 500. It shows that these companies made $18 trillion in revenue. This is two-thirds of the U.S. GDP in 20234.
- To get on the list in 2023, a company needed at least $7.2 billion in revenue4.
- In 2023, there were 52 companies with women CEOs. This is a sign of improvement in gender diversity3.
- Even though profits dropped by 15%, the list still shows important economic patterns4.
Historical Background
The Fortune 500‘s story started in 1955 with Edgar P. Smith, an editor at Fortune5. He created it to show the power of U.S. businesses at a time when the U.S. led the world’s industries. At first, it included only manufacturing, mining, and energy companies. But since 1995, service companies have been added3. This change reflects shifts in the economy.
As time went on, the Fortune 500 list changed a lot. It went from focusing on manufacturing giants to tech leaders like Amazon and Apple5. This change shows how the American economy is always moving. It highlights how important the Fortune 500 is for understanding corporate success and the economy’s health.
Criteria for Making the Fortune 500 List
To understand who makes the Fortune 500 list, it’s key to know the strict criteria used. This part explains the specific requirements and how companies are ranked by Fortune.
Eligibility Requirements
Companies in the U.S. that are incorporated and actively running make the list. They need to share their company financial statements with government bodies, such as with their 10-K filings6. This includes private companies and cooperatives that do the same. Yet, some do not qualify, like private companies not filing, foreign corporations, and subsidiaries held by others in the U.S6.
Ranking Methodology
The way companies are ranked mainly looks at their total revenue6. For banks, this includes all types of income. Insurance companies’ revenue comes from premiums, investments, and more7. This method gives a fair look across different sectors.
Checking the data is done carefully. It’s compared to earnings reports, annual summaries, and data from places like Refinitiv and S&P Global Market Intelligence6. Keeping the financial data correct is vital. It shows which companies are truly leading and highlights trends in the economy on the Fortune 500 list.
History of the Fortune 500 List
The story of the Fortune 500 list is truly captivating. It shows how the American economy has changed. Started in 1955, it first ranked the top companies, including giants like General Motors and U.S. Steel8. Throughout the years, this list has reflected changes in the U.S. economy.
In its early days, the Fortune 500 focused only on industries like manufacturing and mining. This showcased the United States’ industrial strengths. But as the economy evolved, so did the Fortune 500 criteria. A key change happened in 1994 with the addition of service companies, bringing in major players like retailers and tech firms8. This update gave a fuller view of America’s corporate landscape and the evolution of Fortune 500 companies.
“The 1994 inclusion of service sector companies diversified the Fortune 500, reflecting more accurately the varied components of the U.S. economy,” said Alan Murray, CEO of Fortune9.
Updating how companies were evaluated was crucial. It ensured giants like Walmart and Amazon were correctly ranked on the list8. By 2023, Fortune 500 firms reported combined revenues of $18.1 trillion, with the top ten companies alone earning over $3.7 trillion9. These figures underscore the massive influence these companies have globally.
In the last 70 years, over 1,800 companies have made it onto the list. This makes the Fortune 500 a true reflection of corporate success and its role in shaping the economy9. The list’s history is a testament to the shifting trends in industry and business achievements over time.
What Is Fortune 500
The Fortune 500 list has changed a lot over time, showing how different business areas have grown or shrunk. When it started in 1955, it only included companies from manufacturing, mining, and energy. But, a lot has changed since those days.
Original Sectors Included
In the beginning, the Fortune 500 focused on industrial and energy companies. These sectors were big in the mid-20th century and led the U.S. economy. Back then, big names like General Motors and Exxon Mobil often topped the list10.
Major Changes Over the Years
In 1995, Fortune began to include service-based companies too. This was a major change for the Fortune 500. It allowed retail giants like Walmart and telecom leaders like AT&T to rise in the rankings. The move highlighted how important services had become to the U.S. economy10. More and more top companies were from new sectors.
Adding service businesses made the Fortune 500 list better reflect the whole economic scene. The 2024 list has big names like Apple, Amazon, and UnitedHealth Group in its top 10. This shows how the economy continues to change11.
The way the Fortune 500 list changes over time shows how it stays relevant. It keeps up with the major players in the U.S. business world.
Top Companies in the 2024 Fortune 500
The 2024 Fortune 500 list showcases top U.S. companies’ amazing achievements. Many sectors are represented, with the top 5 showing outstanding growth and resilience. These companies play a huge part in the Fortune 500’s total revenues.
Top 5 Companies and Their Revenues
Walmart keeps its lead on the Fortune 500 list, making over $611 billion last year12. It’s their 11th year at the top. Amazon is next, with nearly $514 billion in revenue12. ExxonMobil is third, earning more than $413 billion12. Apple, with over $394 billion, is fourth12. UnitedHealth Group stays fifth with $324 billion12.
These top companies underline their key role in our economy. Together, Fortune 500 firms reached $18.8 trillion in revenue in 202313. Walmart’s success shows its market lead, followed by Amazon, ExxonMobil, Apple, and UnitedHealth Group. Each adds greatly to the total Fortune 500 revenues.
First-Time Entrants
In 2024, several newbies joined the Fortune 500 list. BrightSpring Health Services, DoorDash, and Workday are among 14 newcomers13. These new entries highlight America’s successful business landscape, pointing to growth in various sectors. Retail and tech are growing fast13, showing the changing business world.
DoorDash’s big market growth shows the delivery industry’s rise and how it meets new customer needs. Monster Beverage’s entry marks the increasing role of functional drinks in America’s corporate scene.
These facts show how top companies keep doing well and help new ones enter the esteemed Fortune 500 list.
Notable Changes in Fortune 500 Rankings
The Fortune 500 rankings are always changing because of market trends, such as mergers and takeovers. These changes highlight the business competition and the big economic impact they create.
Mergers and Acquisitions
Mergers and purchases are key to shaking up the Fortune 500 list. Companies do this to get ahead or beat rivals. This has led to big money moves among top players. For example, tech giants like Amazon, Apple, Alphabet, Microsoft, and Meta have all grown their revenues greatly through smart buys and growing their business14. This shows their success in both expanding and leading the industry.
Bankruptcies and Economic Shifts
Bankruptcies and financial lows greatly affect the Fortune 500 ranks, hitting both old and new firms hard. A bad economy can knock several companies off the list, showing the unstable nature of business. For example, General Motors fell from the top in 1996 to #21 by 2022, while Tesla jumped up 190 places to #50 in the same time. This highlights how fresh ideas and adapting to market changes are crucial14.
Impact of Fortune 500 Companies on the U.S. Economy
Fortune 500 companies significantly shape the U.S. economy. They generate trillions in revenues and provide millions of jobs worldwide. For example, Fortune 500 companies started by immigrants or their descendants brought in $8.1 trillion and employed over 14.8 million people globally in 2022. Their economic impact is massive151617.
These companies boost local economies too, especially in states like New York, California, Texas, and Illinois. In New York, 30 New American Fortune 500 firms are based, while California hosts 24. They play a key role in supporting state economies and enhancing national financial health1517. Some even generate revenues that exceed their state’s GDP, highlighting their importance15.
Immigrant-founded companies have always been crucial to U.S. economic growth. Back in 2011, over 40% of the Fortune 500 were started by immigrants or their kids16. Currently, immigrants account for about 21.7% of U.S. entrepreneurs. This equals roughly 3.2 million people who significantly contribute to jobs and economic development16. Companies like Apple, Google, Amazon, and Costco were all started by immigrants or their kids16. Together, they made $1.4 trillion and employed almost 2.2 million people in 202316.
The influence of Fortune 500 companies goes beyond just numbers. They shape labor trends and boost innovation in many sectors. These firms are key to the U.S. economy, showing the strength of corporate finances and the job market. Understanding these companies helps us see their crucial role in economic stability and growth151617.
Understanding the Prestige of Fortune 500
Being on the Fortune 500 list is a big honor. It boosts a company’s reputation and builds trust with investors. Companies on this list are seen as leaders, showing strong economic impact and stability.
Why It Matters
Making it to the Fortune 500 means a company is doing really well financially and has a powerful presence in the market. The list is based on revenue, proving a company’s reliability18. For investors, this list is a goldmine for finding stable and profitable companies19.
Big names like Apple, Walmart, and Amazon highlight the list’s importance and the tough competition to get on it. In 2022, companies needed at least $6.4 billion in revenue18. This was a 19% jump from the year before.
Impact on Companies and Investors
For companies, being listed means more recognition. It attracts skilled workers and valuable business relationships. It also helps in getting better financing options for growth and innovation19. Indian companies like LIC and Reliance Industries show the global reach and power of the list18.
Investors use the Fortune 500 to find companies that are financially healthy and likely to grow19. The detailed review process helps in evaluating a company’s long-term success and profit potential.
Key Takeaways from the Fortune 500 List
The Fortune 500 list began in 1955 and is crucial for understanding corporate America’s state2. It ranks the biggest U.S. companies by their earnings, showing key economic trends and new business leaders20. This list helps people see market changes and make smart choices.
Walmart topped the list in 2024 for the 12th year with $648 billion in sales, leading the retail world2. Amazon and Apple are close behind, earning $575 billion and $383 billion2. The list welcomed 14 new companies, pointing out shifts in corporate America2.
The Fortune 500 list’s growth shows how companies withstand hard times, like the pandemic20. Top companies share traits: excellent leadership, clear goals, and investing in their employees20. The Fortune 500 is a vital tool for understanding and shaping the American economy’s future20.
Source Links
- What Are Fortune 500 Companies? | Bankrate – https://www.bankrate.com/investing/what-are-fortune-500-companies/
- What Is a Fortune 500 Company? How Companies Are Ranked – https://www.investopedia.com/terms/f/fortune500.asp
- What Is the Fortune 500? | The Motley Fool – https://www.fool.com/terms/f/fortune-500/
- Fortune 500 – https://corporatefinanceinstitute.com/resources/equities/fortune-global-500/
- Fortune 500 | Companies, Definition, Global, & Facts – https://www.britannica.com/topic/Fortune-500
- Methodology for Fortune 500 – https://fortune.com/franchise-list-page/fortune-500-methodology-2022/
- Methodology for Global 500 – https://fortune.com/franchise-list-page/global-500-methodology-2022/
- Fortune 500 – https://en.wikipedia.org/wiki/Fortune_500
- What is a Fortune 500 company? The story behind the list – https://fortune.com/article/what-is-fortune-500-company-list/
- S&P 500 vs. Fortune 500: What’s the Difference? – https://www.investopedia.com/ask/answers/033115/what-difference-between-sp-500-and-fortune-500.asp
- List of Fortune 500 Companies and Their Websites | Full List of Rankings – 2024 – https://www.zyxware.com/articles/4344/list-of-fortune-500-companies-and-their-websites
- Fortune 500 list: The top 10 companies dominating business – https://fortune.com/article/fortune-500-list-top-companies/
- FORTUNE ANNOUNCES 2024 FORTUNE 500 – https://www.prnewswire.com/news-releases/fortune-announces-2024-fortune-500-302162721.html
- How the Fortunes of the Fortune 500 Have Changed Since 1996 – https://www.pymnts.com/connectedeconomy/2023/how-the-fortunes-of-the-fortune-500-have-changed-since-1996/
- New Report Reveals Immigrant Roots of Fortune 500 Companies – https://www.americanimmigrationcouncil.org/news/new-report-reveals-immigrant-roots-fortune-500-companies
- Fortune 500 Companies with Immigrant Roots Generated More Money Than the GDP of Most Western Nations – https://immigrationimpact.com/2023/08/29/immigrant-fortune-500-companies-gdp/
- What is the New American Fortune 500 and what does immigration have to do with it? – https://www.visabusinessplans.com/blog/2023/october/what-is-the-new-american-fortune-500-and-what-do/
- Understanding the fortune 500 list – https://www.linkedin.com/pulse/understanding-fortune-500-list-parth-gupta
- Understanding the Fortune 500 List: What It Means for Businesses and Investors – https://www.firmpavilion.com/blog/understanding-the-fortune-500-list-what-it-means-for-businesses-and-investors
- 6 Lessons Small Businesses Can Learn From Fortune 500 Companies – https://www.linkedin.com/pulse/6-lessons-small-businesses-can-learn-from-fortune-500-