The Fortune 500 lists the biggest companies in the U.S.
The Fortune 500 lists the top 500 companies in the U.S. by gross revenue. The list is compiled by Fortune magazine and is published annually. The list includes both private and public companies, so long as their revenues are published (some privately held companies do not publish this information).
Criteria
The ranking criteria for the Fortune 500 is quite simple. The company must be a U.S.-based firm that publishes their financial data. Ranking is determined by looking at a company's gross revenue. However, Fortune will make adjustments to the revenue figures based on any outstanding taxes. The companies are then ranked from highest gross revenue to lowest. The list has been criticized for failing to provide a fully accurate picture of all companies. Some privately held firms do not publish their financial data, and as such cannot be listed on the Fortune 500 list.
Past Top Performers
There are usually a few companies that exchange top honors each year. Companies like ExxonMobil, Wal-Mart, Chevron and General Electric have shared the top five spots for the past few years. Traditionally, the list was dominated solely by energy firms, heavy manufacturing or mining; however, today the companies on the list are much more diverse, with service- and knowledge-based businesses taking up more and more positions.
Other Lists
The Fortune 500 is not the only list Fortune publishes. There are also the Fortune 100 and Fortune 1000, which are identical to the Fortune 500 in criteria but publish their respective numbers (100 and 1000) of companies. There is also the Fortune 50, which publishes a list of the top commercial banks, utilities, life insurance companies, retailers and transportation companies. Each of the categories of companies on the Fortune 50 has a unique criteria for evaluation which is usually based on assets, not revenue.
History
The Fortune 500 list first came out in 1955 and ranked companies based on their yearly gross revenue. The list provided insight into what the big economic trends were for companies in the U.S. As time progressed, this proved to be quite true; the list changes each year and evolves as business evolves. Companies come and go, and so do entire industries. Comparing the list of 1955 and the list of today would demonstrate just how much has changed, and the two lists would have very few similarities.
Facts
According to USPages, if all the companies on the 2005 Fortune 500 list added their profits together, the total profit would be around $610 billion. Out of the 500 companies on the Fortune 500, only 10 of them have a female CEO. The oldest company on the Fortune 500 list is The Bank of New York, which was founded in 1784. DuPont is the only company to be included on every list since the first Fortune 500 list in 1955.
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