Fortune 1000 Definition

What is the Fortune 1000?

The Fortune 1000 is an annual list of America’s 1000 largest companies maintained by the popular magazine Fortune. Fortune ranks eligible businesses based on revenue generated from core businesses, discounted operations, and consolidated subsidiaries. Since revenue is the basis for inclusion, each business is licensed to operate in the United States and files a 10-K or comparable financial statement with a government agency.

The list does not contain private organizations as they generally hide information from the public. Other companies excluded on the list include those who have failed to submit complete financial statements for at least three quarters of the current fiscal year.

Key points to remember

  • published by Fortune magazine, the Fortune 1000 is a list of the largest companies incorporated in the United States and companies licensed to do business in the United States, by revenue.
  • The Fortune 1000 list is a pretty good indicator of the current state of the business sector.
  • Excluded from the ranking are private companies and companies that do not fully declare their financial situation for at least three quarters of the current financial year.
  • Rankings are based on revenue generated from core businesses, discounted operations, and consolidated subsidiaries.
  • The Fortune 500 list eclipses the Fortune 1000 list in part because of the near-constant change of lower-tier companies on the 1000 list.

Understanding the Fortune 1000

The Fortune 1000 is still considered an important and prestigious list despite having considerably less awareness than the most selective. fortune 500 rankings. The annual list attracts considerable interest from readers who follow the business sector and seek to learn more about influential leaders in the US economy.

Notably, Walmart (WMT) has topped the list for eight of the past 10 years, dethroned only by ExxonMobil (XOM) in 2009 and 2012 when oil prices reached short-term highs.

Many investors view a drop in ranking or failure to make the list as a sign of weakness for a company or industry, while an upward move portends strength. Since income dictates this list, many of the top companies offer products that serve most people. Some of the products may include groceries and clothing found at Walmart, gasoline to power a vehicle from an ExxonMobil station, or the widely held iPhone produced by Apple (AAPL). For this reason, many business-to-business (B2B) software vendors are unable to break into the upper echelons of the list.

California has the most (118) Fortune 1000 companies of any state, and New York City has the most (74) of any US city in 2018.

The best members of the Fortune 1000

Fortune magazine compiles a list of 1,000 companies with the highest incomes in the United States. Companies on this list represent more than 2/3 of the national economy and have combined total revenues of $15 trillion.

Ranked number 1 for the seventh consecutive year, Walmart (WMT) reported $572 billion in revenue and $13.7 billion in profit for 2021. Walmart also ranked high on the e-commerce sales list, but not as high as Amazon (AMZN) – Fortune’s #2 pick.

Amazon’s total revenue for 2021 was $470 billion, a 21.7% increase from 2020, and profit was $33.4 billion. An increase in consumer plans contributed to this marked growth, along with increases in Amazon Prime and entertainment subscriptions, which serve more than 150 million customers worldwide.

Apple was third on the list with 2021 revenue of $365.8 billion and net income of $94.8 billion.

In addition to being ranked number 1 for highest earners, Walmart is also number 1 on Fortune’s list as the most profitable company.

How to Invest in the Fortune 1000

Curious to know how to invest in the most important sources of income in the country? Unless you are Warren Buffet, you may not be able to invest in each company individually. However, even with sufficient resources, investing them one by one may not be wise or practical.

Fortunately, a index fund may be a viable option. For example, the S&P500 is an index fund that tracks the performance of the 500 largest companies in the United States. It is likely that all companies in this index are on the Fortune 1000 list. However, it might ignore the bottom 500 companies in the Fortune 1000 list.

Covering a wider range of companies, the Russell 1000 Index tracks the major stocks in the Russell 3000. It focuses on the market capitalization of the top 1000 companies in the United States. For investors wishing to invest in as many Fortune 1000 companies as possible, this index might be the best option due to the number of stocks included.

Fortune 1000 review

The Fortune 1000 list offers a valuable gauge of the current state of the business sector. Yet the Fortune 500, which only measures the top 50% of these companies by revenue, vastly eclipses this list. In many ways, the rapid turnover of companies listed near the bottom of the Fortune 1000 prevents it from gaining the same mainstream acceptance as the smaller Fortune 500 list.

For many years, researchers have equated turnover as a proxy for positive economic spin and the underlying strength of innovation and productivity. However, high churn is not always a sign of strong business growth; instead, it can mean an active merger and acquisition (M&A) environment where big companies buy out small companies.

What is the difference between Fortune 500 and Fortune 1000?

The Fortune 1000 is a list of top revenue-generating companies for the previous year. The fortune 500 is a subset of the Fortune 1000 that includes the 500 largest companies. The fortune 100 is an even more elite subset, with the top 100 revenue-generating companies.

What are the top 10 Fortune 1000 companies?

For the 2022 Fortune 1000 list, the top 10 companies were:

  1. walmart
  2. Amazon
  3. Apple
  4. SVC Health
  5. United Healthcare
  6. Exxon Mobil
  7. Berkshire Hathaway
  8. Alphabet (Google)
  9. McKesson
  10. AmerisourceBergen

When did the fortune lists start?

In 1955, Fortune magazine first made the Fortune 500 list. At the time, General Motors topped the list with revenues exceeding $9.8 billion. It was a position he continued to hold for the next three decades. Besides General Motors, many of the biggest companies by revenue in 1955 are names that still exist today, including Chrysler, Exxon, and General Electric.

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