Fortune Global 500

What is the Fortune Global 500?

Fortune magazine compiles a yearly list called the Fortune Global 500. This list ranks the top 500 companies worldwide based on their revenue.

The yearly list ranks the top 500 companies worldwide based on their generated revenue. The Fortune magazine compiles the list, which differs from the Fortune 500, only exclusive to U.S. Corporations.

In 2022, the world's 500 largest companies were from 31 countries. These companies generated $37.8 trillion in revenues and $3.1 trillion in profits.

For the ninth consecutive year, Walmart claimed the top spot. It is their 17th time since 1995; quite impressive, right? Long $WMT. With $105 billion in earnings, Saudi Aramco (No. 6) regained its position as the world's most profitable company.

The earnings generated from oil have been invested into the PIF (the public investment fund, which is the sovereign wealth fund of Saudi Arabia). The PIF is estimated to be $700 billion in assets.

For the first time, there were more Fortune Global 500 companies based in Mainland China and Hong Kong than in the U.S. 124 vs. 121. Add in Taiwan's companies, and the Greater China total jumps to 133.

understanding the Fortune Global 500

Fortune magazine was founded by the co-founder of Time magazine, Henry Luce, in 1929 in the wake of The Great Depression. In Henry Luce’s words, “Fortune magazine is the ideal superclass magazine published for the wealthy and influential people.”

Headquartered in New York, Fortune Media Group publishes the esteemed Fortune 100 & Fortune 500 lists annually.

Over the years, the company developed a reputation for its social conscience, for its reporting during the great depression, for the quality of articles it featured, and for its colored photographs. In its first year, the magazine was sold for $1, equivalent to $17.85 in 2022.

Under its editor, John Huey, the Fortune magazine published its first Global Fortune 500 list in 1995. The list was topped by the Japanese car manufacturing company Mitsubishi Motors.

Walmart has been the top company on the Fortune Global 500 list for the ninth consecutive year.

Global 500 in 2022

Here is the list of the top 10 companies on the Global Fortune 500 list. For the complete list, you can visit here.

The following is a list of the top 10 companies in the world by revenue in 2022. This is a compilation made by Fortune magazine.

Source:Fortune

Walmart

Walmart, an American company founded by Sam Walton in 1962 in Arkansas, owns a chain of hypermarkets spanning the Americas, Africa, China, and India.

In 2022, the Arkansas headquartered company stood as the highest-earning corporation in the world for the fiscal year with a staggering revenue of $572.8 billion US dollars.

The company offers a diverse range of products at affordable prices, from food and clothing to electronics and beyond; Walmart's discount stores and hypermarkets have got you covered.

Walmart emphasizes customer service and innovation and has expanded its operations into the realm of e-commerce, providing convenient online ordering and home delivery options.

A strong focus on an efficient supply chain and logistics ensures competitive pricing.

The company has faced scrutiny over its impact on small businesses and labor practices. Nevertheless, Walmart remains a prominent force in the global retail industry, constantly striving for growth and excellence.

Amazon

It is yet another American company topping the list. Amazon is a multinational technology company, and it focuses on e-commerce, cloud computing, and digital streaming.

It is recognized as one of the most valuable brands on the planet. Don't believe me? Check out their market cap sitting at $1.33 trillion.

Originally, it was founded as an online bookstore by Jeff Bezos. The company quickly expanded to sell other products, and in 2000 it began offering cloud computing services.

It has since become a leader in e-commerce, cloud computing, and digital streaming.

Amazon's business segments include:

1. Amazon Web Services (AWS)
   It provides on-demand global cloud computing solutions for computing, storage, database, analytics, and application deployment.
2. Amazon Prime
   It is a paid subscription service that offers members free two-day shipping or less on eligible items, including Prime Video and Amazon Music membership.
3. Amazon Retail
   This is the company's e-Commerce business. It sells various products, e.g., books, electronics, home goods, etc. 

State Grid

State Grid Corporation of China (SGCC) is third on the spot, trailing behind Walmart and Amazon. SGCC is the largest in the world in the utility sector.

The company in 2022 had 871,145 employees and 1.1 billion customers. Their clientele brought in an equivalent of USD 460 billion.

In 1986, China commenced a three-stage initiative to reform its power sector. The third and final stage, implemented in March 2002, involved restructuring the country's electric power system.

The goal was to introduce competition and separate generation and transmission functions overseen by the State Council of the People's Republic of China.

On December 29, 2002, the State Grid Corporation of China was established as a result of restructuring the former State Power Corporation of China into two grid companies, five generation groups, and four accessorial business companies.

Business segments:

• Transmission and distribution
• Power generation
• New energy
• Technology and Engineering
• International

CNPC

CNPC, a company ranked 4th in the Global Fortune 500, stands as one of the world's largest oil and gas producers.

It was established in 1988 through a dynamic merger of multiple smaller oil and gas firms, and ever since, it has experienced remarkable growth, propelling its success to new heights.

Despite CNPC being state-owned, it has effectively established itself as a significant participant in the international oil and gas sector.

CNPC's activities encompass:

1. Exploration and Production
   The company actively explores and extracts oil and gas resources. With assets within China and worldwide, CNPC's reach extends far and wide.
2.  Refining and Marketing
   CNPC is actively involved in refining and marketing oil and gas products. Its refineries span across China and various other global locations, ensuring a robust presence in the market.
3. Chemicals
   CNPC's influence extends to the production of chemicals. The company exhibits a comprehensive approach to its operations by operating chemical plants within China and beyond.
   With its significant presence and influential role, CNPC assumes a crucial position within the global oil and gas industry, shaping its dynamics and driving its evolution.

Sinopec Group

The fifth spot belongs to Sinopec Group, another prominent Chinese state-owned oil and gas company that ranks as the second-largest producer in China.

Similar to CNPC, the company was established in 1983 through a merger of multiple smaller companies. Since then, Sinopec Group has succeeded, and drastically expanded its global oil and gas presence.

Sinopec Group operates in the following business segments, similar to CNPC's business segments:

1. Exploration and Production
   Actively involved in exploring and producing oil and gas, Sinopec Group holds valuable assets in China and worldwide.
2. Refining and Marketing
   Sinopec Group is crucial in refining and marketing oil and gas products. It operates strategically located refineries in China and around the world.
3. Chemicals 
   Sinopec Group produces chemicals, operating chemical plants in China and other locations around the globe.

Saudi Aramco

At the 6th spot in the Global Fortune 500, Saudi Aramco leads the previous Chinese companies on our list as the world's largest oil producer. 

The Arabian-owned company has an impressive established oil reserve of over 260 billion barrels, second only to Venezuela. They also boast a natural gas reserve of over 200 trillion cubic feet.

Founded in 1933 as the California Arabian Standard Oil Company (CASOC), Saudi Aramco made a significant breakthrough in 1938 with the discovery of Dammam Number 7, the first commercially viable oil field in Saudi Arabia.

This discovery set the stage for rapid growth, as Aramco saw its production skyrocket to over 1 million barrels per day in the 1950s.

The Saudi Arabian government subsequently acquired CASOC's assets between 1973 and 1980, leading to the company's renaming to Saudi Aramco.

Saudi Aramco operates in exploration and production, refining and marketing, and petrochemicals. In 2022, it recorded a record profit of over $161 billion. This was more than the combined profit of Google, Amazon, Microsoft, and Tesla.

Apple

Apple, the visionary company recognized by its iconic bitten apple logo, specializes in consumer electronics, computer software, and online services. It is part of the Big Five American information technology firms, alongside Amazon, Alphabet, Microsoft, and Meta.

Apple was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne when it introduced its first product, the Apple I personal computer.

Apple, since then, has launched a series of successful products, including the Macintosh computer, iPod, iPhone, and iPad. Apple has also focused on shaping the Apple ecosystem, where all devices work seamlessly, making it hard not to get more of their products.

Core operations are:

• Hardware: Apple designs, manufactures, and sells computers, smartphones, tablets, and wearables. The seamless integration is the key factor many choose Apple products vs. competitors.
• Services: Apple offers various services, including the App Store, iCloud cloud storage, and Apple Music streaming service.

Volkswagen

Volkswagen is an industry giant synonymous with luxury and prestige. It boasts an impressive car portfolio that includes world-renowned brands like Bugatti, Bentley, and Porsche.

Headquartered in the picturesque city of Wolfsburg, Lower Saxony, Germany, Volkswagen has a rich and storied history dating back to its establishment in 1937 under the visionary guidance of the German Labour Front and Adolf Hitler.

With a grand vision to create a "people's car" (Volkswagen in German), they unveiled the iconic Volkswagen Beetle in 1938, captivating automotive enthusiasts around the globe.

Volkswagen's product offerings and services encompass:

1. Passenger Cars
   With prestigious brands such as Volkswagen, Audi, Seat, Škoda, Bentley, Bugatti, Lamborghini, and Porsche, Volkswagen manufactures and sells exceptional passenger cars that exude quality and craftsmanship.
2. Commercial Vehicles
   Volkswagen specializes in designing, manufacturing, and selling commercial vehicles under the reputable Volkswagen Commercial Vehicles brand, catering to diverse business needs.
3. Financial Services
   Acknowledging the diverse requirements of its customers, Volkswagen goes beyond automobiles by providing comprehensive financial services, including leasing and insurance options.

China State Construction Engineering

This is a Chinese state-owned construction company that is headquartered in Beijing, China. CSCEC is the largest construction company in the world in terms of revenue.

As seen as a trend as the other Chinese companies on this list, CSCEC was similarly founded in 1953 as a merger of several smaller construction companies.

CSCEC's diversified business segments encompass

1. Civil Engineering
   Engaging in constructing roads, bridges, tunnels, and various other civil engineering projects.
2. Building Construction
   Undertaking the construction of impressive structures, including skyscrapers, hotels, hospitals, and more.
3. Engineering Procurement and Construction (EPC): 
   Providing comprehensive EPC services encompassing project design, engineering, procurement, and construction.
4. International Business
   Actively participating in construction projects across numerous countries worldwide, contributing to global infrastructure development.
   CSCEC is also investing in new technologies, such as 3D printing, to stay ahead of the competition.

CVS Health

CVS Health has been dedicated to providing complete pharmacy, healthcare, and wellness services to Americans for more than 50 years.

The familiar sight of a CVS pharmacy serves as a testament to the company's widespread presence and accessibility in delivering essential healthcare solutions to communities across the nation.

The company operates through three key business segments:

1. Pharmacy
   With over 10,000 pharmacies spanning the United States, CVS ensures convenient access to essential prescription medications and a wide range of healthcare products at the customer's convenience.
2. Healthcare Services
   |CVS Health goes beyond standard pharmacy offerings by providing various healthcare services.
   These include MinuteClinic, a retail health clinic that offers convenient and accessible medical care, as well as Caremark, a pharmacy benefit manager that simplifies the prescription drug coverage process.
3. Health Insurance
   CVS recognizes the importance of comprehensive coverage; the company offers diverse health insurance plans, including commercial and Medicare Advantage Plan options. 

Researched and authored by Won S. Mejia Helfer | LinkedIn

Reviewed and edited by Alexander Bellucci | LinkedIn

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