The Fortune Global 500 is an annual ranking published by Fortune magazine that lists the top 500 corporations globally based on their revenue and other financial metrics. The ranking, which has been published since 1990, provides a comprehensive snapshot of the economic landscape by highlighting the most powerful businesses worldwide.
History and Evolution
Initial Publication
The idea of a global ranking originated as an extension of the Fortune 500, which ranks U.S. companies. The first Fortune Global 500 list was published in 1990, measuring the world’s largest corporations by revenues.
Methodological Refinements
Over the years, the methodology for ranking companies has undergone modifications to ensure accuracy and relevance. The primary criterion remains total revenue, but other metrics like profitability, total assets, and number of employees are also considered.
Criteria for Inclusion
Revenue
The primary metric for inclusion in the Fortune Global 500 is total revenue. Companies from various industries and regions are compared based on this financial measure.
Additional Metrics
Metrics such as net profits, assets, and equity are also considered, and these provide a fuller financial picture of each corporation.
Geographic Diversity
Corporations from all around the world are included, which makes the list truly global. Companies are compared irrespective of their country of origin.
Notable Companies and Industries
Technology Giants
Many technology companies such as Apple, Samsung, and Amazon feature prominently on the list due to their substantial market presence and revenue.
Oil and Gas
Historically, oil and gas companies like ExxonMobil and Royal Dutch Shell have secured top positions due to the enormous scale of their operations.
Financial Services
Banks and financial institutions such as JPMorgan Chase and ICBC also rank high, reflecting the scale and influence of the global financial sector.
Methodology
Data Collection
Data for the Fortune Global 500 are collected from publicly available company reports, stock exchanges, and other financial disclosures.
Data Verification
Fortune collaborates with financial experts and analysts to verify the data collected, ensuring accuracy and reliability.
Ranking Determination
Once data is collected and verified, companies are ranked primarily on total revenue. Additional factors such as net profit, assets, and employee count are also examined for auxiliary insights.
Comparisons and Related Terms
Fortune 500
While the Fortune Global 500 ranks companies worldwide, the Fortune 500 focuses specifically on U.S. corporations.
Forbes Global 2000
Forbes Global 2000 is another prominent ranking that considers a mix of four metrics: sales, profits, assets, and market value, providing a slightly different perspective compared to the Fortune Global 500.
S&P Global 1200
The S&P Global 1200 is an index that includes 1,200 global stocks, offering a more extensive list as compared to the Fortune Global 500, but based on different selection criteria.
FAQs
What is the inclusion criterion for the Fortune Global 500?
How often is the Fortune Global 500 published?
Which country has the most companies on the Fortune Global 500 list?
How is the data for the Fortune Global 500 collected and verified?
Can companies from any industry be included in the Fortune Global 500?
Summary
The Fortune Global 500 offers a detailed and authoritative ranking of the world’s largest corporations based on revenue, providing valuable insights into the global economic landscape. It has evolved over the years to ensure accuracy and relevance, and remains a key resource for understanding corporate power and influence globally.
References
- Fortune Magazine, “Fortune Global 500,” Fortune.
- Forbes, “Global 2000,” Forbes.
- Standard & Poor’s, “S&P Global 1200,” S&P Global.
