What is the Fortune Global 500?
The Fortune 500 has given rise to other types of lists, some that sound very much like the original. Take the Fortune Global 500, for example. The only difference is "global," but it's a little word that makes a huge difference.
Just like the Fortune 500, the Fortune Global 500 ranks the top 500 companies, but these are multinational companies instead of U.S.-based companies. It uses the same ranking metrics, most importantly annual revenue based on public-facing reporting. It's a huge honor for any company to be included on any of Fortune's lists.
Just like the Fortune 500, the Fortune Global 500 can be insightful for investors, especially those looking to diversify their portfolios with more global companies.
What are the requirements to become a Fortune 500 company?
Fortune 500 companies must be incorporated in and operate within the United States of America and must file regular financial reports with the United States government. Although these companies are primarily public companies, there are private companies that meet this criteria, as well.
The companies' revenues are then compared based on their most recent 10-Ks or similar reports for the fiscal year. However, if a company fails to file full financials for three quarters of the year, they're excluded.
At one point, the Fortune 500 was limited to companies operating in the manufacturing, mining, and energy sectors. But in 1995, it was expanded to include other types of non-industrial companies, dubbed "service companies." Since the magazine had been ranking these companies on their own list for years, it was more of a list consolidation than a bold new move.
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