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What Does Being a Fortune 500 Company Means?

Fortune 500 brand logo is a status for a company that has to meet specific guidelines to be eligible for having this identity or brand. Every year, Fortune Magazine declares a list of top Fortune 500 companies based on total revenues by the end of the year. Both public sector and privately-owned companies are included in the selection process.

Fortune magazine has terms and conditions to select the 500 Fortune companies in the United States. There are many agencies but these small organizations are not permitted due to the low-profit margin. A Fortune 500 company has to file taxes with the federal state with proof of annual turnover. If the company breaks down suddenly with a low credit rating, it can lose its status. Therefore, after verifying the current financial condition with the total volume of revenues, Fortune chooses the particular company. Get a direct guide, information, and effective statistic reports about Fortune 500 by visiting

Basic Eligibility Criteria for Becoming Fortune 500

Companies running a business in America are eligible to have Fortune 500 but these organizations should have legal licenses of incorporation. Their business set-ups must be located in America without any temporary permit to do the business. The company needs to have legal papers, licenses, permits, and tax clearance proofs. A commercial organization may have different types of products ranging from credit cards, mutual funds, stocks to any commercial product.

However, by the end of the fiscal year, they should submit all the tax papers. Companies that do not pay taxes are not prioritized. The same case happens with the companies being merged or collaborated with the foreign or domestic companies only for preparing a financial report. Fortune does not consider this type of company as being competent to have such Fortune 500.

Fortune 500 List – Inclusion and Exclusions

Around 1800 US-based companies have got Fortune 500 logos but many of these commercial organizations have been excluded due to the abrupt economic downtime. The recession, havoc financial loss, and internal problems to manage business have ruined the foundations of the companies severely. The strength of the economy of the company must increase to be qualified as the Fortune 500.

In America, apart from Fortune 500, there are other two organizations such as Dow Jones Industrial Average and Standard &Poor’s 500 lists to nominate the companies. They also set the parameters to give the selected companies 500 status. However, what they lack is that these two major conglomerates do not include private companies situated in America.

On the other hand, S&P Index puts focus on the top licensed companies which have awesome credit scores and pecuniary resilience to outrank others. It calculates the total price of the stocks earned by the company. However, in the case of Fortune 500, the bench of the jury likes to check the revenues generated by the companies instead of stock value.

Minimum Threshold Revenue Amount Changes

If you are planning to bring your company under Fortune 500, you have to consider different factors. It is not easy to apply for the Fortune 500 brand. Every year, the company’s net profit is not the same. It can double up or go down depending on the economic condition, marketing trend, and overall achievement. The threshold for getting Fortune 500 was around $49.7 million in 1955.

However, in 2018, the last Fortune 500 company earned $5.428 billion to exist on the list. So, it was a dramatic change in setting the minimum amount which needs to be obtained by a company to become a registered Fortune 500. You have to monitor the market to see the target amount which must be acquired by a company to be competent for being Fortune 500.

New Companies Struggle with Old Giants for Fortune 500

New companies have to struggle to compete with giant organizations like Apple, Google, and DuPont. These reputed companies have a stronger financial background with long-term association. People know Colgate Palmolive and Apply very well. So, as being a start-up business owner, you have to compete with the brand companies. If you want to be lucky to get the Fortune 500 award, you have to expand the business for profit-making to reinforce the economic infrastructure and ensure stability as well.

Highly ambitious entrepreneurs must have razor-sharp innovative ideas on how to fuel up the start-up companies to become toppers with remarkable financial status. Follow examples and success stories of business tycoons whose great vision is worth the effect to make them legends in history. Keep upgrading your company through innovation so that eventually your organization will have better infrastructures to stand against all adversities to claim the Fortune 500 soon.


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