Most Profitable Companies

We all assume that Apple with its iPhone 6 is the most profitable company out there. But we’ll be surprised to know that even with the over ten million iPhones sold in the opening week, Apple is still the second most profitable company. You are probably wondering which other companies have the ‘honor’ to be the most profitable companies in today’s society.

Well, each year there is a ranking released by ‘Fortune’ of the 500 biggest companies in the world. This ranking is based upon the revenue created in the previous year. However, to produce a high amount of revenue is completely different from making a profit. You might think that if a company has a considerable revenue, it will lead to an imposing profit, but these two matters are not entirely proportional. Some companies may have a higher revenue, which gives them a decreased profit. On the other side, some may also have a lower revenue, but they recoup that with lower costs, which can lead to a higher profit as well.

So, if you want to know more about the most profitable companies in the world you can start by making a thorough research. You should take into account the net income of the company and also, you should be very careful when converting the currency into dollars (if the company is operating outside the United States). It is advisable to use the average annual exchange rate of local currencies opposed to the dollar where applicable. Nevertheless, different countries employ different accounting standards, which can affect reported profits.