Fortune 500

Definition

The Fortune 500 is an annual list published by Fortune magazine that ranks the top 500 corporations in the United States based on their total revenue for their respective fiscal years. 

What is Fortune 500?

Fortune 500 is one of the most prestigious and widely recognized rankings of American companies and serves as an indicator of the country’s economic landscape. The Fortune 500 ranking is based on companies’ total revenue, which is typically defined as their gross income before deductions for expenses, taxes, interest, and depreciation. Companies are ranked according to their total revenue for the most recent fiscal year, with the highest revenue earners listed at the top of the ranking.

To be eligible for inclusion in the Fortune 500, companies must meet certain criteria, including being incorporated and operating in the U.S, having publicly available financial information, and meeting minimum revenue thresholds. Companies that do not meet these criteria or do not disclose their financial information are not considered for inclusion in the ranking.

Inclusion in the Fortune 500 is highly prestigious, as it signifies a company’s status as one of the largest and most financially successful businesses in the country. Being ranked among the Fortune 500 can enhance a company’s reputation, attract investors, and provide a benchmark for measuring its performance and competitiveness relative to its peers.