Business
The 20 Most and Least Profitable Companies, Per Employee
The 20 Most and Least Profitable Companies, Per Employee
The Fortune 500 is an elite club of the biggest American businesses, which combined to generate profits of over $1.2 trillion in 2019.
But how much profit do these companies make on a per employee basis?
This visualization uncovers the answer by comparing the 20 companies with the most and least returns per employee, using calculations from Tipalti (based on the Fortune 500 list).
Top 20: Most Profit per Employee
Diving right in, the companies that make the most money per employee may surprise you.
Housing giants Fannie Mae and Freddie Mac take two of the top three spots, bringing in $1.9 million and $1.0 million per employee respectively in 2019.
The two U.S. government sponsored enterprises (GSEs) are major players in the secondary mortgage market, buying and repackaging nearly half the mortgages in the country. The duo was allowed to retain their profits as of October 2019, instead of returning them to the U.S. Treasury.
| Company | Sector | Profit per Employee | Profits ($M) | Employees |
|---|---|---|---|---|
| Fannie Mae (Federal National Mortgage Association) | Financials | $1,888,000 | $14,160 | 7,500 |
| KKR | Financials | $1,448,699 | $2,005 | 1,384 |
| Freddie Mac (Federal Home Loan Mortgage Corporation) | Financials | $1,046,721 | $7,214 | 6,892 |
| NRG Energy | Energy | $969,631 | $4,438 | 4,577 |
| EOG Resources | Energy | $943,103 | $2,735 | 2,900 |
| Biogen | Health Care | $795,811 | $5,889 | 7,400 |
| Blackstone Group | Financials | $705,680 | $2,050 | 2,905 |
| ConocoPhillips | Energy | $691,250 | $7,189 | 10,400 |
| Enterprise Products Partners | Energy | $628,904 | $4,591 | 7,300 |
| Visa | Business Services | $619,487 | $12,080 | 19,500 |
| Simon Property Group | Financials | $560,533 | $2,102 | 3,750 |
| Gilead Sciences | Health Care | $456,441 | $5,386 | 11,800 |
| Oneok | Energy | $443,789 | $1,279 | 2,882 |
| FM Global | Financials | $443,391 | $2,479 | 5,591 |
| Mastercard | Business Services | $436,452 | $8,118 | 18,600 |
| Cheniere Energy | Energy | $423,529 | $648 | 1,530 |
| Technology | $411,308 | $18,485 | 44,942 | |
| Apple | Technology | $403,328 | $55,256 | 137,000 |
| Cincinnati Financial | Financials | $384,038 | $1,997 | 5,200 |
| Massachusetts Mutual Life Insurance | Financials | $373,989 | $3,701 | 9,896 |
Apple employs 137,000 people—the largest workforce by far among the 40 companies profiled—but still makes $403,328 per employee. Facebook is the only other tech giant to bring in more money per employee at $411,308.
Bottom 20: Least Profit per Employee
On the other end of the spectrum, Uber is one of the most well-known companies currently bleeding profits, losing $316K per employee. In fact, the ride-hailing service lost approximately $1.8 billion in the second quarter of 2020 alone.
| Company | Sector | Profit per Employee | Profits ($M) | Employees |
|---|---|---|---|---|
| Apache | Energy | -$1,123,301 | -$3,553 | 3,163 |
| EnLink Midstream | Energy | -$825,830 | -$1,119 | 1,355 |
| Brighthouse Financial | Financials | -$556,391 | -$740 | 1,330 |
| PG&E | Energy | -$332,870 | -$7,656 | 23,000 |
| Frontier Communications | Telecommunications | -$322,706 | -$5,911 | 18,317 |
| Uber Technologies | Technology | -$316,208 | -$8,506 | 26,900 |
| Hess | Energy | -$229,859 | -$408 | 1,775 |
| Coty | Household Products | -$199,158 | -$3,784 | 19,000 |
| Devon Energy | Energy | -$197,222 | -$355 | 1,800 |
| Altria Group | Food, Beverages & Tobacco | -$177,123 | -$1,293 | 7,300 |
| National Oilwell Varco | Energy | -$175,927 | -$6,095 | 34,645 |
| Equitable Holdings | Financials | -$171,584 | -$1,733 | 10,100 |
| Chesapeake Energy | Energy | -$133,913 | -$308 | 2,300 |
| CenturyLink | Telecommunications | -$123,976 | -$5,269 | 42,500 |
| Mosaic | Chemicals | -$84,683 | -$1,067 | 12,600 |
| Alcoa | Materials | -$81,522 | -$1,125 | 13,800 |
| Targa Resources | Energy | -$77,985 | -$209 | 2,680 |
| Voya Financial | Financials | -$58,500 | -$351 | 6,000 |
| Wayfair | Retailing | -$57,992 | -$985 | 16,985 |
| Occidental Petroleum | Energy | -$46,319 | -$667 | 14,400 |
COVID-19 has also had an intense effect on some of the companies at the bottom end of the profit per employee spectrum. Chesapeake Energy and Frontier Communications are just two examples that have filed for Chapter 11 bankruptcy in recent months—they each lost $134K and $322K per employee in 2019 respectively.
I’m pretty confident we will see more bankruptcies than in any business person’s lifetime.
—James Hammond, CEO of BankruptcyData
Profit per Employee by Sector
When all the companies in the Fortune 500 are taken into account, sector-specific numbers reveal interesting trends.
Financials bring in the most profit per employee at $116K, while Food and Drug Stores see 17 times less profit at $6.7K per employee. In fact, eight out of the top 20 most profitable companies are found in the financial sector.
| Sector | Profits per Employee | Profits ($M) | Employees |
|---|---|---|---|
| Financials | $116,228 | $378,445 | 3,256,067 |
| Technology | $87,532 | $252,836 | 2,888,490 |
| Energy | $85,547 | $75,410 | 881,505 |
| Media | $57,947 | $21,634 | 373,333 |
| Health Care | $54,679 | $145,166 | 2,654,872 |
| Telecommunications | $50,636 | $38,251 | 755,417 |
| F&B incl. Tobacco | $41,946 | $42,924 | 1,023,317 |
| Business Services | $39,354 | $36,835 | 936,000 |
| Chemicals | $27,977 | $11,328 | 404,888 |
| Apparel | $26,154 | $7,776 | 297,300 |
| Industrials | $25,827 | $27,006 | 1,045,675 |
| Aerospace & Defence | $24,793 | $23,903 | 964,100 |
| Household Products | $24,504 | $10,415 | 425,038 |
| Transportation | $21,762 | $32,454 | 1,491,358 |
| Engineering & Construction | $19,648 | $6,773 | 344,716 |
| Materials | $13,408 | $6,024 | 449,252 |
| Retailing | $10,373 | $67,318 | 6,489,923 |
| Hotels, Restaurants & Leisure | $9,653 | $16,880 | 1,748,714 |
| Wholesalers | $9,025 | $5,842 | 647,312 |
| Motor Vehicles & Parts | $8,113 | $7,108 | 876,123 |
| Food & Drug Stores | $6,746 | $8,355 | 1,238,645 |
Interestingly, as a whole, the energy sector comes in third place in terms of profit per employee at $86K—that said, nine out of the bottom 20 least profitable companies are also found in this highly volatile industry.
Though the vast majority of businesses impacted by COVID-19 have been small to mid-sized companies, the above calculations also show that Fortune 500 companies are not safe, either.
Retail
Visualized: 10 Black Friday Retail Trends
Consumers are expecting more this Black Friday, but for retailers, the pressure is mounting. Here are 10 trends that may impact them in 2023.
10 Black Friday Retail Trends
This year, retailers are under major pressure to orchestrate even more substantial and enticing Black Friday discounts for their customers.
We partnered up with Airwallex to visualize the latest available data from 2022 to understand what this year’s holiday weekend could look like for retailers.
Consumer Loyalty and Price
Theme: Buyer Behaviour
In a 2022 U.S. study conducted by Emarsys, 58% of people claim they are more loyal to retailers that offer them discounts, incentives, and rewards, indicating that price plays a crucial role in fostering loyalty.
Moreover, 60% of respondents admitted to turning their back on the brands they were previously loyal to in an effort to save money amid inflation hikes.
Convenience is King
Theme: Buyer Behaviour
Salesforce notes that 2022 saw a global increase of 9% in Buy Online, Pick Up In Store (BOPIS) adoption during Cyber Week compared to early November data.
Specifically in the U.S., retailers offering BOPIS experienced 38% higher growth in online revenue during Cyber Week compared to those without this service.
Global Spending is Up
Theme: Spending Patterns
Globally, 2022 Cyber Week spending increased 2% YoY to $281 billion. This is despite some regions experiencing a decline and some retailers reporting lighter foot traffic.
Margins at Risk
Theme: Spending Patterns
While consumers are spending more, retailers are still seeing their margins squeezed due to a variety of factors such as high inflation, high cost of goods, strained systems, and increased demand for discounts.
That is why we are starting to see certain retailers choosing to “boycott” Black Friday, and although estimates vary, The Guardian reported that as many as 85% of smaller retailers were not participating in Black Friday in 2021.
The Smartphone Surge
Theme: Buyer Behaviour
According to Adobe, 47% of U.S. online sales came from smartphones during the 2022 holiday spending season—up from 43% in 2021.
This reflects a broader trend within the retail sector, aligning with projections for substantial growth in the global mobile commerce market.
Deeper Discounts
Theme: Spending Patterns
In another benefit to consumers, discounts are getting deeper. Throughout the 2022 holiday season, the average discount stood at 21% compared to 19% in 2021 with apparel, skincare, and beauty touting the deepest discounts.
Alternative Payment Options
Theme: Payments
When it comes to payment methods, alternatives such as Buy Now Pay Later (BNPL) are gaining traction, as evidenced by a 5% increase in orders YoY.
Financing Lower-Priced Goods
Theme: Payments
Despite the success of Buy Now Pay Later, the average order value decreased 5% YoY, meaning consumers are using the payment method more, but to help finance lower-priced goods.
Sales Spikes in APAC + Europe
Theme: Payments
Even though Black Friday has been traditionally viewed as an American retail phenomenon, it has transcended its U.S. origins and has been embraced by consumers the world over.
Several countries witness significant spikes in online sales in 2022, most notably in Australia with a +239% sales spike, and Spain at +576% spike when compared to average October sales.
Retailers Hit with Hidden Fees
Theme: Payments
Did you know that merchants of all shapes and sizes can often find it hard to escape paying unnecessary transaction fees during the holiday season?
For context, every international dollar a retailer generates during the holiday period could be converted up to three times, costing them up to 5.5% of every transaction.
Considering the multitude of benefits afforded to consumers during Black Friday and the holiday season, the question that looms is: is this retail bonanza genuinely worthwhile for retailers?
By partnering with Airwallex, retailers can simplify global payments, but also capitalise on increased consumer spending—without sacrificing on profit.
Learn more about Airwallex now.
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