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Fortune 500



Definition

The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks 500 of the largest US corporations by total revenue for their respective fiscal years. The list includes publicly and privately held companies for which revenues are publicly available. It’s seen as a benchmark of business success and economic health in the U.S.

Phonetic

The phonetic pronunciation of “Fortune 500” would be “[fɔːr.tʃʊn faɪv hʌn.drəd]”.

Key Takeaways

Sure, here are three main takeaways about the Fortune 500 in HTML format:“`html

  1. Ranking Of Companies: Fortune 500 is an annual ranking of the biggest American companies by total revenue for their respective fiscal years. It includes both public and private companies.

  2. Economically Indicator: Fortune 500 list is a reflection of the American economy as it presents a detailed picture of the major industries shaping the US economy. A company’s position in the Fortune 500 list is often used to gauge the health of its industry.

  3. History And Influence: The list has been published by Fortune magazine since 1955 and has significantly influenced corporate culture in the US and worldwide. A ranking within the Fortune 500 is a mark of prestige.

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Importance

The Fortune 500 is a significant term in business and finance because it serves as an annual list compiled and published by Fortune magazine that ranks the top 500 corporations in the United States according to their gross revenue. It’s an important indicator of overall financial health and market position for major U.S. businesses. The Fortune 500 list provides a snapshot of the dominant trends in economic sectors, a guide to identifying industry leaders, competitors and potential partners or acquisitions. It also helps to analyze the shift in economic power and the vitality of different sectors. Being listed as a Fortune 500 company boost a company’s reputation, showing that it is a reliable and stable economic actor with major impact on the U.S. economy.

Explanation

The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks 500 of the largest US corporations by total revenue for their respective fiscal years. The list is considered a representation of the pulse of the US economy and serves as a useful tool for business analysts, researchers, and investors. The purpose of this list is not only to provide a snapshot of the key players in the business world but also to give a clear indicator of the economic trends and the sectors driving the U.S. economy. In essence, the Fortune 500 serves as a measure of corporate size and capabilities. By examining the companies that make it onto this list, one can garner insights about the business strategies, revenue growth, and profitability of the most successful companies. Investors often use this list to identify potential investment opportunities and gauge the overall health of the industries those companies represent. Furthermore, companies strive to make it onto the Fortune 500 list as it can provide them with increased market credibility, attract prospective customers, and help retain top talent. So, the Fortune 500 is not just a list, but a mirror showing where the economy, businesses, and society at large are heading.

Examples

The Fortune 500 is a list compiled and published annually by Fortune magazine ranking the top 500 U.S. public corporations as measured by their gross revenue. Here are three real-world examples of companies typically found on the Fortune 500 list:1. **Walmart**: This massive retail corporation consistently ranks at the top of the Fortune 500 list. Known for its efficiency and large-scale operations, Walmart has stores in various parts of the world and is heavily involved in many sectors including retail, grocery, and online selling.2. **Amazon**: Another top-ranking Fortune 500 company, Amazon initially started as an online bookstore but quickly diversified into a wide variety of e-commerce products and services, including video and audio streaming, food delivery, cloud computing services, and artificial intelligence.3. **Exxon Mobil**: A multinational oil and gas corporation, ExxonMobil often features prominently in the Fortune 500 list. Despite the volatile condition of the energy market due to factors such as changing oil prices, ExxonMobil remains one of the largest corporations based on gross revenue. These companies exemplify the business scale, versatility, and economic power typically associated with Fortune 500 corporations.

Frequently Asked Questions(FAQ)

What is Fortune 500?

The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks 500 of the largest US corporations by total revenue for their respective fiscal years.

Who publishes the Fortune 500 list?

The Fortune 500 list is published by Fortune magazine, a globally renowned business publication.

How often is the Fortune 500 list updated?

The Fortune 500 list is updated annually, usually around the middle of the year.

What criteria is used to compile the Fortune 500 list?

The rankings are based on the total revenue of a company in the previous fiscal year.

Does the Fortune 500 list include international companies?

No, the Fortune 500 list only includes companies that are incorporated or registered in the United States.

Can a privately-held company be in the Fortune 500 list?

Yes, both publicly traded and privately held companies can be included in the Fortune 500 list, as long as they report their revenue figures to a government agency.

How can I find out if a company is on the Fortune 500 list?

You can visit Fortune magazine’s official website, where the list is published annually. You may also find listings in the print magazine issue.

How does making the Fortune 500 list impact a company?

Being included in the Fortune 500 list can enhance a company’s reputation, providing recognition for their business successes and potentially making the company more attractive to investors, employees, and customers.

What is the difference between Fortune 500 and Fortune 100?

The primary difference lies in the number of companies listed. The Fortune 500 lists the top 500 companies based on their gross revenue in a fiscal year, whereas the Fortune 100 lists the top 100 companies based on the same criteria.

Can a company’s rank in the Fortune 500 list fluctuates?

Yes, a company’s rank can move up or down, or even be out of the list, based on its revenue in the respective fiscal year compared to other companies.

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