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How Gender Diversity Enhances the Bottom Line

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How Gender Diversity Leads to a Bigger Bottom Line

How Gender Diversity Leads to a Bigger Bottom Line

Despite making up half of the population and 47% of the labor force, women remain highly underrepresented in the top echelons of business.

  • 5% of the richest billionaires are women
  • 6% of S&P 500 companies have women CEOs
  • 20% of Fortune 500 board members are women

There are many arguments that can be made for closing this gender gap, but the most compelling one is very simple: there’s a growing body of research that shows that gender diverse companies make more money.

Women and Profit

Today’s infographic comes to us from Evolve ETFs, a company that has launched an ETF focused on gender diversity, and it shows that companies with more women in senior roles are making better decisions and ultimately higher profits.

Better Decisions
The more diverse a team is, the more likely it is to make the best business decision. Logically, this makes sense, since multiple perspectives are considered this way – and groupthink can be avoided.

There have been various studies on decision-making that show this, but one compelling example highlighted by Forbes covers 600 business decisions made by 200 different teams over a two year span. This research found that more diverse and inclusive teams made better decisions up to 87% of the time, took less time to make the decision, and delivered 60% better results.

Better Bottom Line
Not surprisingly, making better business decisions leads to bigger returns, as well. Credit Suisse, for example, found that boards with more women had a 36% higher return on equity.

Meanwhile, research from Morgan Stanley found that the top-third of companies (that hire the most women) had 2% higher equity returns than average.

A final study worth noting is from The Peterson Institute for International Economics, a Washington, D.C. think tank, which shows that companies with at least 30% female leaders end up raking in 6% higher net margins.

Future Growth

On the company level, gender diversity means more profit and better decisions – but what could this mean in aggregate?

Global management consultancy firm McKinsey & Company offers up a rosy picture: they figure that if the gender gap is closed in their “full potential” scenario, up to $28 trillion extra could be added to global GDP growth by 2025.

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Animation: The Biggest Tech Companies by Market Cap Over 23 Years

In business, the only constant is change – and for tech companies, this is even more true. Here are the biggest tech companies over 23 years.

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The business world is certainly not a static one.

In the past, we’ve shown that the market leaders in the most stable industries are unlikely to keep their leadership positions over long periods of time.

But limit your window to just the dynamic world of tech and you’ll see an even more extreme example of this inherent volatility. Sometimes companies are able to separate from the rest of the pack for days or months, but it’s never an advantage that lasts for long.

Biggest Tech Companies by Market Cap

Today’s animation was originally posted to Reddit by /r/TheNerdistRedditor and captures the crazy world of tech valuations for public companies.

Watch the intense 1 minute animation below:


Note: the data here only lists companies traded on U.S. exchanges, and does not show every single valuation point.

Over just 23 years, the company topping the list flips eight separate times – and if you were to get more granular with the numbers (looking at daily valuations, for example), you’d see it happen far more often.

Today’s Market Cap Leaders

As we noted above, company valuations are constantly changing – and back in early September 2018, both Apple and Amazon even topped the $1 trillion milestone for a short period of time.

Using the same criteria as the above animation, which is based on U.S. listed companies, here are the top 10 tech companies based on data at time of publication:

RankCompanyTicker(s)Market Cap (March 18, 2019)
#1MicrosoftMSFT$902 billion
#2AppleAAPL$887 billion
#3AmazonAMZN$856 billion
#4AlphabetGOOG, GOOGL$824 billion
#5AlibabaBABA$471 billion
#6FacebookFB$458 billion
#7IntelINTC$243 billion
#8CiscoCSCO$236 billion
#9OracleORCL$192 billion
#10NetflixNFLX$159 billion

Based on March 18, 2019 data

This is not a comprehensive list globally, as it misses companies like Tencent which are listed on other exchanges such as the Hong Kong Stock Exchange. Based on recent HKD/USD conversion rates, it’s estimated that Tencent would be roughly worth $450 billion today – good enough for 7th on the list.

Regardless, since change is the only constant in the tech world, it’s fair to say that the above list of the biggest tech companies will likely be much different in just a few months time.

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Chart of the Week

The Economies Adding the Most to Global Growth in 2019

Global economics is effectively a numbers game – here are the countries and regions projected to contribute the most to global growth in 2019.

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The Economies Adding the Most to Global Growth in 2019

Global economics is effectively a numbers game.

As long as the data adds up to economic expansion on a worldwide level, it’s easy to keep the status quo rolling. Companies can shift resources to the growing segments, and investors can put capital where it can go to work.

At the end of the day, growth cures everything – it’s only when it dries up that things get hairy.

Breaking Down Global Growth in 2019

Today’s chart uses data from Standard Chartered and the IMF to break down where economic growth is happening in 2019 using purchasing power parity (PPP) terms. Further, it also compares the share of the global GDP pie taken by key countries and regions over time.

Let’s start by looking at where global growth is forecasted to occur in 2019:

Country or RegionShare of Global GDP Growth (PPP) in 2019F
China33%
Other Asia (Excl. China/Japan)29%
United States11%
Middle East & North Africa4%
Euro Area4%
Latin America & Caribbean3%
Other Europe3%
Sub-Saharan Africa2%
Japan1%
United Kingdom1%
Canada1%
Rest of World8%

The data here mimics some of the previous estimates we’ve seen from Standard Chartered, such as this chart which projects the largest economies in 2030.

Asia as a whole will account for 63% of all global GDP growth (PPP) this year, with the lion’s share going to China. Countries like India and Indonesia will contribute to the “Other Asia” share, and Japan will only contribute 1% to the global growth total.

In terms of developed economies, the U.S. will lead the pack (11%) in contributing to global growth. Europe will add 8% between its various sub-regions, and Canada will add 1%.

Share of Global Economy Over Time

Based on the above projections, we were interested in taking a look at how each region or country’s share of global GDP (PPP) has changed over recent decades.

This time, we used IMF projections from its data mapper tool to loosely approximate the regions above, though there are some minor differences in how the data is organized.

Country or RegionShare of GDP (PPP, 1980)Share of GDP (PPP, 2019F)Change
Developing Asia8.9%34.1%+25.2 pp
European Union29.9%16.0%-13.9 pp
United States21.6%15.0%-6.6 pp
Latin America & Caribbean12.2%7.4%-4.8 pp
Middle East & North Africa8.6%6.5%-2.1 pp
Sub-Saharan Africa2.4%3.0%+0.6 pp

In the past 40 years or so, Developing Asia has increased its share of the global economy (in PPP terms) from 8.9% to an estimated 34.1% today. This dominant region includes China, India, and other fast-growing economies.

The European Union and the United States combined for 51.5% of global productivity in 1980, but they now account for 31% of the total economic mix. Similarly, the Latin America and MENA regions are seeing similar decreases in their share of the economic pie.

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