Introduction
A fortune 500 company is one of the most accomplished and admired businesses in the world. They are a select group of companies who, through hard work and dedication, have achieved a top 500 ranking of the United States’ largest publicly-traded corporations. These companies make up a large part of the US economy and, as such, are key players in the global market. Understanding what it takes to be a fortune 500 company is important for anyone looking to break into the business world.
Definitions and Criteria
A fortune 500 company is a term used to identify the 500 largest companies in the US. The fortune 500 ranking is compiled and published annually by Fortune Magazine, a business magazine which analyzes and compiles data regarding the largest US businesses. To be counted in the ranking, companies must be publicly traded (meaning they have shares of ownership that can be sold to a wide group of other people or entities). As such, privately held companies are not eligible for the ranking.
Only US companies are eligible to make the list. The ranking is based on the total revenues earned based on the most recent available data. That data includes quarterly and end-of-year financial statements that are publicly available. This means that companies who are privately held will not have the public financial numbers needed to make the list.
Benefits and Emphasis of Being a Fortune 500 Company
As one of the most prestigious and sought-after business awards, making the fortune 500 list is a significant accomplishment for any company. This can open up many opportunities for the company, as many investors, financial institutions, and other businesses may be more likely to invest in or partner with a company that has been recognized in the ranking. To be a fortune 500 company is seen as a mark of success in the business world and can open up doors that may have otherwise been closed.
In addition, making the list reflects positively on the portfolios of the CEOs of the included companies. These individuals are viewed as being successful and skillful business leaders who have been able to build an empire out of their hard work and dedication.
Conclusion
Being a fortune 500 company is a significant accomplishment. These are the largest and most successful business enterprises in the US, with each company having achieved their exalted status through hard work and dedication. Being a part of this select group can open many doors for businesses and make opportunities that may not have been possible without the renown of the fortune 500 list. In other words, this is an elite class that all ambitious business owners aspire to join.