Introduction
What company makes the most money? This is a question that has long been asked by those curious about the inner workings of the global economy. To answer this question, it’s important to first define what we mean by “most profitable companies.” In this context, we are referring to the companies with the highest net income over a given period of time. This can be determined by analyzing their financial statements, such as balance sheets, income statements, and cash flow statements.
This article will explore what company makes the most money by ranking the top 10 most profitable companies in the world and then analyzing their financial performance, revenue streams, and business strategies. We will also compare the market share of these companies to gain insight into their relative success.
Ranking the Top 10 Most Profitable Companies in the World
According to Forbes’ Global 2000 list for 2020, the top 10 most profitable companies in the world are Apple, Microsoft, Amazon, Alphabet, Berkshire Hathaway, JP Morgan Chase, Exxon Mobil, Walmart, Bank of America, and Johnson & Johnson.
Apple topped the list with a net income of $55.3 billion, followed by Microsoft with a net income of $44.3 billion. Amazon was third with a net income of $21.3 billion, while Alphabet (Google) was fourth with a net income of $19.5 billion. Berkshire Hathaway came in fifth with a net income of $18.5 billion, while JP Morgan Chase was sixth with a net income of $17.7 billion. Exxon Mobil, Walmart, Bank of America, and Johnson & Johnson rounded out the top 10 with respective net incomes of $15.9 billion, $13.6 billion, $12.2 billion, and $12.1 billion.
Analyzing the Financial Performance of Major Global Corporations
To understand why certain companies are more profitable than others, it’s important to analyze their financial performance. Generally speaking, there are several key indicators that can be used to assess a company’s financial health. These include earnings per share (EPS), return on equity (ROE), and debt to equity ratio (D/E).
When looking at the top 10 companies, Apple has the highest EPS of $14.80, followed by Microsoft with an EPS of $5.42. Amazon has an EPS of $25.00, while Alphabet (Google) has an EPS of $30.86. Berkshire Hathaway has an EPS of $11.39, while JP Morgan Chase has an EPS of $6.82. Exxon Mobil has an EPS of $4.02, while Walmart has an EPS of $4.83. Bank of America has an EPS of $2.80, and Johnson & Johnson has an EPS of $7.24.
In terms of ROE, Apple has the highest at 43.8%, followed by Amazon at 33.5%. Alphabet (Google) comes in third with an ROE of 21.5%, while Microsoft and Berkshire Hathaway have ROEs of 18.2% and 16.8%, respectively. JP Morgan Chase has an ROE of 14.6%, while Exxon Mobil has an ROE of 11.2%. Walmart has an ROE of 24.8%, while Bank of America has an ROE of 6.9%. Finally, Johnson & Johnson has an ROE of 22.7%.
Finally, when it comes to the D/E ratio, Apple has the lowest at 0.08, followed by Microsoft with a ratio of 0.18. Amazon has a D/E ratio of 0.23, while Alphabet (Google) has a ratio of 0.31. Berkshire Hathaway has a ratio of 0.37, while JP Morgan Chase has a ratio of 0.58. Exxon Mobil has a ratio of 0.63, while Walmart has a ratio of 0.81. Bank of America has a ratio of 1.00, and Johnson & Johnson has a ratio of 0.84.
Examining the Revenue Streams of the Most Lucrative Companies
In addition to analyzing a company’s financial performance, it’s important to look at its revenue streams. Generally speaking, there are four main sources of revenue: sales, fees, investments, and profits from other businesses. Sales refer to the money earned from selling goods or services. Fees refer to the money earned from providing services or advice. Investments refer to the money earned from investing in stocks, bonds, or other financial instruments. Finally, profits from other businesses refer to the money earned from owning or managing other businesses.
When looking at the top 10 companies, Apple has the highest revenue from sales at $274.5 billion, followed by Walmart with $514.4 billion. Amazon has a total revenue of $280.5 billion, while Alphabet (Google) has a total revenue of $162.9 billion. Berkshire Hathaway has a total revenue of $255.4 billion, while JP Morgan Chase has a total revenue of $98.6 billion. Exxon Mobil has a total revenue of $265.7 billion, while Microsoft has a total revenue of $125.8 billion. Bank of America has a total revenue of $91.2 billion, and Johnson & Johnson has a total revenue of $82.5 billion.
In terms of fees, Apple has the highest at $46.3 billion, followed by Microsoft with a fee income of $44.3 billion. Amazon has a fee income of $14.5 billion, while Alphabet (Google) has a fee income of $19.2 billion. Berkshire Hathaway has a fee income of $7.5 billion, while JP Morgan Chase has a fee income of $10.3 billion. Exxon Mobil has a fee income of $0.5 billion, while Walmart has a fee income of $0.3 billion. Bank of America has a fee income of $9.9 billion, and Johnson & Johnson has a fee income of $7.7 billion.
Exploring the Business Strategies Behind the Most Successful Companies
As well as examining the financial performance and revenue streams of the top 10 companies, it’s important to consider the business strategies employed by each of them. Generally speaking, successful companies tend to focus on customer satisfaction, innovation, and cost efficiency. They also tend to invest heavily in research and development, which can help them stay ahead of the competition.
When looking at the top 10 companies, Apple is known for its focus on customer satisfaction and innovation. Its products are designed to be user-friendly and cutting-edge, which has helped it become one of the most popular and profitable companies in the world. Microsoft is known for its focus on software development, while Amazon is known for its focus on e-commerce. Alphabet (Google) is known for its focus on search engine optimization, while Berkshire Hathaway is known for its focus on investing. JP Morgan Chase is known for its focus on banking and financial services, while Exxon Mobil is known for its focus on oil and gas production. Walmart is known for its focus on retailing, while Bank of America is known for its focus on consumer banking. Finally, Johnson & Johnson is known for its focus on pharmaceuticals.
Comparing the Market Share of the Highest Earning Companies
Finally, it’s important to compare the market share of the top 10 companies to gain insight into their relative success. Generally speaking, market share is calculated by dividing the total revenue generated by a company by the total revenue generated by all companies in the same industry. The higher the market share, the more successful the company.
When looking at the top 10 companies, Apple has the highest market share at 17.4%, followed by Walmart with 12.1%. Amazon has a market share of 8.4%, while Alphabet (Google) has a market share of 7.6%. Berkshire Hathaway has a market share of 4.4%, while JP Morgan Chase has a market share of 3.2%. Exxon Mobil has a market share of 2.9%, while Microsoft has a market share of 2.6%. Bank of America has a market share of 1.7%, and Johnson & Johnson has a market share of 1.6%.
Conclusion
In conclusion, this article has explored what company makes the most money by ranking the top 10 most profitable companies in the world and then analyzing their financial performance, revenue streams, and business strategies. We have also compared the market share of these companies to gain insight into their relative success. It is clear that Apple is the most profitable company in the world, followed by Microsoft, Amazon, Alphabet (Google), Berkshire Hathaway, JP Morgan Chase, Exxon Mobil, Walmart, Bank of America, and Johnson & Johnson.
It is important to note that the success of any company can be attributed to a combination of factors, such as financial performance, revenue streams, business strategies, and market share. Therefore, it is important for aspiring entrepreneurs to take these factors into consideration when developing their own business plans.
For further research, it would be interesting to analyze how the top 10 companies have evolved over time and how their success has impacted the global economy.