Overview
The Fortune 500 is an annual ranking of companies in the United States ordered by the amount of revenue they report. Compiled and published by Fortune magazine, the list highlights the largest firms by scale rather than profitability, market value, or employee count. It appears each year as a snapshot of corporate size across industries and is widely cited by business commentators, investors, and the media.
How companies are ranked
Placement on the list is determined primarily by total revenue. In practice this means Fortune uses companies' reported sales or receipts for a defined fiscal year. Basic points include:
- Revenue basis: rankings reflect gross revenue reported in a given fiscal period and are not adjusted for profit or margins.
- Eligible firms: large public companies are commonly listed; privately held firms that disclose revenue may also qualify.
- Annual update: the list is revised once per year to incorporate mergers, new filings, and corporate reorganizations.
History and development
First published in 1955, the Fortune 500 grew out of the magazine's effort to quantify corporate scale in postwar America. Over subsequent decades the composition has shifted with economic trends: energy and manufacturing companies dominated early editions, while technology, retail, and health-care firms have become more prominent in recent years. Fortune has also produced related rankings, including international lists and specialty indexes.
Uses and significance
Inclusion on the Fortune 500 is a marker of size and influence. Corporations use their ranking for publicity, recruiting, and bargaining with suppliers and lenders. Analysts and policy makers consult the list to track concentration of economic activity, sectoral shifts, and employment patterns. The ranking can affect corporate prestige even though it does not measure financial health directly.
Limitations and criticisms
The Fortune 500 measures scale by revenue, not profitability, innovation, or societal impact. Critics note that high revenue can mask low margins, debt burdens, or unsustainable practices. Changes in accounting rules, corporate structure, or one-time transactions can also move companies on or off the list without reflecting long-term performance. For a broader perspective, readers often compare the Fortune 500 with other measures and with Fortune's own Global 500 and sector-specific lists.
For further details on scope and methodology see official Fortune documentation and summaries of revenue measures, which explain what counts as reportable sales or receipts for the ranking (revenue).