The Fortune 1000: A Close Look '24

Introduction

The Fortune 1000 is an annual list of the 1000 largest American companies maintained by the popular magazine Fortune . Fortune ranks the eligible companies by revenue generated from core operations, discounted operations, and consolidated subsidiaries.

Fortune 1000 spans various sectors, including technology, retail, energy, finance, transportation, and healthcare. This variety in industries reflect the complex, miscellaneous nature of modern economy, and gives us a close up look into both established sectors and emerging industries. Fortune 1000 companies are significant contributors to the U.S. economy, driving innovation, employment, and economic growth.

The miscellaneous nature of the Fortune 1000 companies allows for analysis of trends across different sectors, comparisons between established and emerging industries, and insights into how various parts of the economy interact and influence each other. In recent analysis, technology companies continue to lead innovation, influencing consumer behavior and business operations globally. Concurrently retail giants adapt to shifting consumer preferences and the rise of e-commerce, maintaining their relevance in a competitive market. Energy companies play a crucial role in shaping sustainable practices and addressing climate change while financial institution provide essential services that facilitate economic stability and growth. Transportation companies are integral to the supply chain and logistics network, ensuring the flow of goods and services. Healthcare organizations address the vital need for medical services and advancement in healthcare technologies.

This article takes a closer look at the operations, market capitalization, revenue, profits, and assets of Fortune 1000 companies, with market values as of March 28, 2024. We will analyze a list of 1,000 companies published annually by Fortune, which has been converted into a CSV file and sourced directly from Kaggle. This dataset includes 1,000 rows and 32 columns, capturing various variables such as Rank, Company Name, Ticker, Sector, Industry, and Profitability (indicating whether the company is profitable or not). Additional variables include Founder is a CEO, Female CEO, Growth in Jobs, Change in Rank, Gained in Rank, Dropped in Rank, Newcomer to Fortune 1000, Global 500 status, World's Most Admired Companies, Best Companies to Work For, Number of Employees, Market Cap (as of March 28, 2024), Revenues, Revenue Percentage Change, Profit, Profit Percentage Change, Assets, CEO Name, Country, Headquarters City, Headquarters State, Website, Company Type, and Updated.

Data Cleaning

Integrity is the primary objective in data cleaning, ensuring each column adheres to a consistent schema. For this dataset, I used Power Query and kept the cleaning minimal. I added delimiters to the "Number of Employees" column, and the "Market Cap," "Revenue," "Assets," and "Profit" columns were all multiplied by 1,000,000 since the values were not originally presented in millions. Additionally, we added the currency sign ($) to these columns. Columns were also renamed to ensure they followed the appropriate format.

Data Visualization

The next step in this analysis is to import the cleaned dataset into Microsoft Power BI to create a dashboard that answers key questions about the Fortune 1000 companies. After importing the dataset, new measures were created using DAX formulas to highlight key metrics that were not readily available in the raw data. The first measure, "Total Rows," was created to confirm the total number of rows in the dataset, which was 1,000. The second measure calculated the total number of employees across all companies in the dataset, totaling 37 million. Additional measures were developed to provide deeper insights: the average market capitalization of the listed companies was $50.84 billion, the average revenue generated was $20.97 billion, the average profit was $1.87 billion, and the average asset value was $63.76 billion. These metrics help provide a comprehensive overview of the financial landscape of the Fortune 1000 companies.

The measures created were all displayed on the dashboard using cards in Microsoft Power BI. Power BI's filtering capabilities allowed for unique data exploration; when a specific company from the Fortune 1000 list is selected, the measures dynamically update to display information only for the chosen company. Let's look at three companies as a case study to demonstrate this filtering feature:

1. Apple: The dashboard shows that Apple appears once in the dataset, reflected by a "Total Rows" count of one. The total number of employees displayed for Apple is 161,000, out of the 37 million total employees. Apple's Market Cap is $2.65 trillion, with a revenue of $383.29 billion. The profit made by the company as of March 28, 2024, is $97 billion, and its assets are valued at $352.58 billion.
2. Berkshire Hathaway: Owned by Warren Buffett, Berkshire Hathaway has 397,000 employees. The company’s Market Cap is $908.92 billion, with revenues of $364.48 billion. The profit recorded is $96.22 billion, and the total asset value is $1.07 trillion.
3. Eli Lilly: This healthcare company employs 43,000 people, has a market cap of $739.66 billion, generates $34.12 billion in revenue, makes a profit of $5.24 billion, and has assets valued at $64.01 billion.

These case studies illustrate how Power BI can filter data to provide detailed insights into individual companies within the Fortune 1000 list, enhancing the ability to analyze and understand specific metrics.

Top 10 Companies by Market Cap

To answer the question above, a bar chart will be created in Power BI with the companies on the Y-axis and the Market Cap on the X-axis. A filter will also be added to display only the top 10 companies with the highest market cap among the 1,000 companies.

From the chart above we can see that Microsoft (MSFT) leads with the highest market cap, valued at $3.13 trillion. Microsoft’s diversified business model, including cloud computing, software, and hardware, contributes to its strong market position. Following Microsoft, Apple (AAPL) has a market cap of around $2.65 trillion. As a major player in the technology sector, Apple's consistent innovation and strong consumer demand for its products have driven its massive market valuation. NVIDIA (NVDA) ranks third with a market cap of approximately $2.26 trillion. NVIDIA, being a leader in graphics processing units (GPUs) and AI technology, its innovations in gaming, data centers, and AI drive its substantial market value. The market cap shown above reflect both their current market influence and future potential growth.

Top 10 Companies by Profit

From the bar chart created above, we can see Apple (AAPL) leading with the highest profit made among the Fortune 1000 companies with a value of $97 billion, followed by Berkshire Hathaway (BRK-B) with value of $96 billion, and Alphabet (GOOG) an internet services and retailing company with a profit value of $74 billion. Apple (AAPL) has consistently reported some of the highest quarterly and annual profits of any company in history, they've frequently broken their own profit records. Apple's profits come from a diverse range of products and services, including iPhones, Macs, iPads, wearables like the Apple Watch, and services like the App Store, Apple Music, and iCloud. AAPL strong brand allows it to command premium prices for its products, and a significant portion of Apple's profits comes from iPhone sales. The iPhone's high profit margins have been a key driver of Apple's financial success. The rank can change based on various factors including global economic conditions, product cycles, and performance of other major corporations. Other companies like Berkshire Hathaway or financial institutions during good years can sometimes surpass Apple in terms of raw profit numbers.

Top 10 Companies by Revenue

The bar chart above displays the top 10 companies by revenue among the Fortune 1000 companies. From the chart, we can see that Walmart (WMT), a giant in the retail sector, leads with a revenue of $648 billion. Amazon (AMZN) follows with $575 billion in revenue, and Apple ranks third with a revenue of $383 billion. Walmart's revenue is a reflection of its enormous scale of operations, with thousands of stores across the United States, and is known for its "Everyday Low Prices" strategy, which appeals to cost-conscious consumers. By keeping prices low, Walmart drives high customer foot traffic and large purchase volumes, boosting its overall revenue. While primarily known for its retail stores, Walmart's revenue also comes from Sam's Club (its membership-based warehouse chain), e-commerce operations, and international markets. In recent years, Walmart has significantly expanded its online presence, competing more directly with Amazon and other e-commerce giants, which has contributed to its revenue growth.

Distribution of Companies by Company Type

The question above addresses the ratio of public companies to private companies in the Fortune 1000. A pie chart was created to illustrate this distribution. The chart reveals that public companies constitute the majority of the Fortune 1000 list, while private companies represent a smaller percentage.

The pie chart above shows the distribution of companies in the Fortune 1000 by Private and Public. Through the legends in the chart we can see that public companies has a percentage value of 97.79% while private companies has a percentage value of 2.21%. Public companies falls on the majority due to the fact that public companies have greater access to capital through public stock offerings, which allows them to fund large-scale operations, expand rapidly, and achieve higher revenue levels. Public companies are subject to rigorous reporting requirements and increased market visibility. This transparency often leads to better investor confidence and market performance, and also public companies are required to disclose their financial performance and business operations, which increases their visibility and attractiveness to investors. This transparency can contribute to higher revenue and, consequently, a higher position on the Fortune 1000 list.

Distribution of Companies by Growth in Jobs

The pie chart above shows the distribution of companies based on whether they create an environment that fosters employee growth. According to the chart, 19 million employees work in environments that allow space for growth, while 17 million employees work in environments that do not. Further analysis reveals that the technology sector is the most conducive to employee growth among the Fortune 1000 companies. In contrast, the financial sector, particularly the insurance industry—property and casualty—tends to offer fewer opportunities for growth. The analysis also shows that out of the Fortune 1000 companies, 553 do not provide growth opportunities for their employees, while 447 companies do. This is a significant issue that companies should address, as creating an environment that supports employee growth is a key factor in increasing productivity and maintaining a motivated workforce.

Distribution of Companies by Profitability

The pie chart above displays the distribution of companies by profitability on the Fortune 1000 list. The chart indicates that over 85% of the companies on the list are profitable, making them attractive investment options. Moreover, 33 million employees work for profitable companies, while about 3 million employees are employed by companies that are not as profitable. Our analysis further reveals that the technology sector has the highest number of unprofitable companies on the list. Reversed, commercial banks stand out as the most profitable industry among the Fortune 1000 companies. This pie chart underscores the varying levels of profitability across different sectors and highlights key areas of financial strength and weakness within the economy.

Top 10 Sectors by Profit

The bar chart above highlights the top 10 sectors that generate the most profit among Fortune 1000 companies. Leading the list is the technology sector, which includes giants like Microsoft, Apple, and Nvidia, making it the most profitable sector with an average profit of $3.89 billion. Following closely are companies in the financial sector, which have an average profit of $2.57 billion, and companies in the energy sector, such as Exxon Mobil, with an average profit of $2.27 billion. Further analysis shows that the technology sector employs a total of 5 million people, the financial sector employs around 4 million, and the energy sector employs approximately 969,000 people. These sectors not only contribute significantly to the nation's GDP but also provide employment to millions, drive technological advancements, and foster a robust economic environment, reinforcing their critical role in the U.S. economy.

Top 10 Industries by Profit

The bar chart above shows the top 10 industries by profit among the Fortune 1000 companies. From the chart, we can see that commercial banks lead in profitability with an average profit of $4.84 billion. This is followed by the internet services and retailing industry, which has an average profit of $5.49 billion, and the insurance industry, specifically property and casualty (stock), with an average profit of $5.16 billion.

Bottom 10 Companies by Market Cap

The bar chart above shows the bottom 10 companies by Market Cap. The leading company in the chart above is iHeartMedia with a market cap of $313.1 million, a revenue of $3.75 million and a total employee of 9,900. iHeartMedia operates primarily in the radio broadcasting and digital streaming sector, which has faced significant challenges over the past decade. The rise of digital music streaming platforms and podcasts has changed how audiences consume audio content, leading to increased competition and a shift in advertising revenue away from traditional radio. The company has been actively working to adapt to the digital transformation in the media industry. The company has invested in digital and streaming services, expanding its reach into podcasts and online radio. However, the transition from traditional broadcasting to digital formats takes time and investment, which may impact its short-term financial performance and market cap. Unlike tech giants or large-scale manufacturers that dominate the Fortune 1000, iHeartMedia's revenue model is heavily reliant on advertising sales, which can be volatile and affected by broader economic trends. iHeartMedia's low market cap on the Fortune 1000 list reflects the broader challenges and transitions it faces in an evolving media landscape.

An Overview of the Dashboard

Conclusion

From the insightful analysis, it can be concluded that the majority of the companies on the Fortune 1000 list are public, with a significantly higher percentage compared to private companies. Companies in the technology, financial, energy, and healthcare sectors have the highest market capitalization, generate the most revenue, and make the most profit as of March 28, 2024. The analysis also shows a significant gender gap in leadership, with companies led by female CEOs accounting for only 9.7%, while those led by male CEOs make up 90.3%. Companies should make a concerted effort to include more women in leadership and managerial positions, promoting diversity and gender equity at the top levels.

For prospective employees, companies that are considered the best to work for, either for starting or continuing a career, are relatively few on this list, representing just 4.4%, while those not ranked as best to work for comprise 95.6%. This suggests a need for more companies to focus on improving workplace culture and employee satisfaction to attract and retain top talent.