Fortune 500 is a list of the top 500 Revenue generating companies of United States. It publishes this list after the reckoning of total tax payment & all other expenditures i.e. it publishes this list after calculating the Net Revenue Collection. It’s most useful list for the shareholders & share-market investors of USA. It is published by the Fortune Magazine, one of the leading Business magazines in USA as an edition for helping the share-market investors amongst their their readers.
Fortune Magazine – It is one of the leading Business magazines of USA sold around the whole living Planet. It mainly publishes the statuses of the Business firms.
About Fortune 500 List
As mentioned above, the fortune 500 is the list of leading 500 revenue generating corporates of USA. It publishes about all the informations about sales, assets, earnings and capitalization of all those corporates written in the list. But rankings of this list is limited to only public companies or corporations which agrees to issue securities which are traded on the stock market. There’s one more distinguishing feature of this list that it also mention the top 10 rankings of most admired Companies
Ranking Factors Considered
For preparing this list, there are some ranking factors considered during the survey for ranking the companies. Those factors are categorised as follows :
Companies listed on the Fortune 500 are compared on the basis of growth & values of their assets. As assets are defined as items of economic value owned by the corporation, though are necessary to be considered as a ranking factor.
A business firm’s earnings are calculated by subtracting the cost of sales, operating expenses, and taxes from its revenues.It decides the net profit af a particular Organisation. It’s also gives addition to Next year’s capital. It is also a very important factor for the Investors & hence considered.
It is referred as the sum of a Company’s debt, stock, and retained earnings. It also stands for invested capital. It is calculated by multiplying the number of shares outstanding by the price per share. Capitalization is determined after assuming the market price of an entire company.
This is how Fortune 500 list is prepared & published according to the statuses of all the companies & corporations of USA. The Proprietors of these companies also gives Fortune Magazines all the statuses easily because they if their company is ranked well it may help fetching new Investors.