The Top 100 Companies of the World: U.S. vs Everyone
When it comes to breaking down the top 100 companies of the world, the United States still commands the largest slice of the pie.
Throughout the 20th century and before globalization reached its current peaks, American companies made the country an economic powerhouse and the source of a majority of global market value.
But even as countries like China have made headway with multi-billion dollar companies of their own, and the market’s most important sectors have shifted, the U.S. has managed to stay on top.
How do the top 100 companies of the world stack up? This visualization pulls from PwC’s annual ranking of the world’s largest companies, using market capitalization data from May 2021.
Where are the World’s Largest Companies Located?
The world’s top 100 companies account for a massive $31.7 trillion in market cap, but that wealth is not distributed evenly.
Between companies, there’s a wide range of market caps. For example, the difference between the world’s largest company (Apple) and the 100th largest (Anheuser-Busch) is $1.9 trillion.
And between countries, that divide becomes even more stark. Of the 16 countries with companies making the top 100 ranking, the U.S. accounts for 65% of the total market cap value.
|Location||# of Companies||Market Capitalization (May 2021)|
|🇺🇸 United States||59||$20.55T|
|🇸🇦 Saudi Arabia||1||$1.92T|
|🇰🇷 South Korea||1||$0.43T|
|🇬🇧 United Kingdom||3||$0.43T|
Compared to the U.S., other once-prominent markets like Japan, France, and the UK have seen their share of the world’s top 100 companies falter over the years. In fact, all of Europe accounts for just $3.46 trillion or 11% of the total market cap value of the list.
A major reason for the U.S. dominance in market values is a shift in important industries and contributors. Of the world’s top 100 companies, 52% were based in either technology or consumer discretionary, and the current largest players like Apple, Alphabet, Tesla, and Walmart are all American-based.
The Top 100 Companies of the World: Competition From China
The biggest and most impressive competitor to the U.S. is China.
With 14 companies of its own in the world’s top 100, China accounted for $4.19 trillion or 13% of the top 100’s total market cap value. That includes two of the top 10 firms by market cap, Tencent and Alibaba.
|Company||Country||Sector||Market Cap (May 2021)|
|#2||Saudi Aramco||Saudi Arabia||Energy||$1,920B|
|#4||Amazon||United States||Consumer Discretionary||$1,558B|
|#8||Tesla||United States||Consumer Discretionary||$641B|
|#10||Berkshire Hathway||United States||Financials||$588B|
|#13||JPMorgan Chase||United States||Financials||$465B|
|#14||Johnson & Johnson||United States||Health Care||$433B|
|#15||Samsung Electronics||South Korea||Technology||$431B|
|#16||Kweichow Moutai||China||Consumer Staples||$385B|
|#17||Walmart||United States||Consumer Discretionary||$383B|
|#19||UnitedHealth Group||United States||Health Care||$352B|
|#20||LVMH Moët Hennessy||France||Consumer Discretionary||$337B|
|#21||Walt Disney Co||United States||Consumer Discretionary||$335B|
|#22||Bank of America||United States||Financials||$334B|
|#23||Procter & Gamble||United States||Consumer Staples||$333B|
|#25||Home Depot||United States||Consumer Discretionary||$329B|
|#26||Nestle SA||Switzerland||Consumer Staples||$322B|
|#28||Paypal Holdings||United States||Industrials||$284B|
|#29||Roche Holdings||Switzerland||Health Care||$283B|
|#31||ASML Holding NV||Netherlands||Technology||$255B|
|#32||Toyota Motor||Japan||Consumer Discretionary||$254B|
|#34||Verizon Communications||United States||Telecommunication||$241B|
|#35||Exxon Mobil||United States||Energy||$236B|
|#36||Netflix||United States||Consumer Discretionary||$231B|
|#38||Coca-Cola Co||United States||Consumer Staples||$227B|
|#41||Cisco Systems||United States||Telecommunication||$218B|
|#44||China Construction Bank||China||Financials||$213B|
|#45||Abbott Labs||United States||Health Care||$212B|
|#46||Novartis AG||Switzerland||Health Care||$212B|
|#47||Nike||United States||Consumer Discretionary||$209B|
|#49||Pfizer||United States||Health Care||$202B|
|#50||Chevron||United States||Oil & Gas||$202B|
|#51||China Merchants Bank||China||Financials||$196B|
|#52||PepsiCo||United States||Consumer Staples||$195B|
|#54||Merck & Co||United States||Health Care||$195B|
|#55||AbbVie||United States||Health Care||$191B|
|#59||Thermo Fisher Scientific||United States||Health Care||$180B|
|#60||Eli Lilly & Co||United States||Health Care||$179B|
|#61||Agricultural Bank of China||China||Financials||$178B|
|#64||Texas Instruments||United States||Technology||$174B|
|#65||McDonalds||United States||Consumer Discretionary||$167B|
|#66||Volkswagen AG||Germany||Consumer Discretionary||$165B|
|#67||BHP Group||Australia||Basic Materials||$163B|
|#68||Wells Fargo & Co||United States||Financials||$162B|
|#69||Tata Consultancy Services||India||Technology||$161B|
|#70||Danaher||United States||Health Care||$160B|
|#71||Novo Nordisk||Denmark||Health Care||$160B|
|#73||Wuliangye Yibin||China||Consumer Staples||$159B|
|#74||Costco Wholesale||United States||Consumer Discretionary||$156B|
|#75||T-Mobile US||United States||Telecommunication||$156B|
|#81||Royal Dutch Shell||Netherlands||Oil & Gas||$148B|
|#82||NextEra Energy||United States||Utilities||$148B|
|#83||United Parcel Service||United States||Industrials||$148B|
|#84||Union PAC||United States||Industrials||$148B|
|#85||Unilever||United Kingdom||Consumer Staples||$147B|
|#87||Linde||United Kingdom||Basic Materials||$146B|
|#88||Amgen||United States||Health Care||$144B|
|#89||Bristol Myers Squibb||United States||Health Care||$141B|
|#91||Bank of China||China||Financials||$139B|
|#92||Philip Morris||United States||Consumer Staples||$138B|
|#93||Lowe's Companies||United States||Consumer Discretionary||$136B|
|#94||Charter Communications||United States||Telecommunication||$135B|
|#96||Sony Group||Japan||Consumer Discretionary||$132B|
|#97||Astrazeneca||United Kingdom||Health Care||$131B|
|#98||Royal Bank of Canada||Canada||Financials||$131B|
|#99||Starbucks||United States||Consumer Discretionary||$129B|
Impressively, China’s rise in market value isn’t limited to well-known tech and consumer companies. The country’s second biggest contributing industry to the top 100 firms was finance, once also the most valuable sector in the U.S. (currently 4th behind tech, consumer discretionary, and health care).
Other notable countries on the list include Saudi Arabia and its state-owned oil and gas giant Saudi Aramco, which is the third largest company in the world. Despite only having one company in the top 100, Saudi Arabia had the third-largest share of the top 100’s total market cap value.
As Europe continues to lose ground year-over-year and the rest of Asia struggles to keep up, the top 100 companies might become increasingly concentrated in just the U.S. and China. The question is, will the imbalance of global market value start to even out, or become even bigger?
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News Explainer: The Economic Crisis in Sri Lanka
Sri Lanka is currently in an economic crisis with over $50 billion in debt and consumer inflation at 39%. So how did they get here?
Explained: the Economic Crisis in Sri Lanka
Sri Lanka is currently in an economic and political crisis of mass proportions, recently culminating in a default on its debt payments. The country is also nearly at empty on their foreign currency reserves, decreasing the ability to purchase imports and driving up domestic prices for goods.
There are several reasons for this crisis and the economic turmoil has sparked mass protests and violence across the country. This visual breaks down some of the elements that led to Sri Lanka’s current situation.
A Timeline of Events
The ongoing problems in Sri Lanka have bubbled up after years of economic mismanagement. Here’s a brief timeline looking at just some of the recent factors.
In 2009, a decades-long civil war in the country ended and the government’s focus turned inward towards domestic production. However, a stress on local production and sales, instead of exports, increased the reliance on foreign goods.
Unprompted cuts were introduced on income tax in 2019, leading to significant losses in government revenue, draining an already cash-strapped country.
The COVID-19 pandemic hit the world causing border closures globally and stifling one of Sri Lanka’s most lucrative industries. Prior to the pandemic, in 2018, tourism contributed nearly 5% of the country’s GDP and generated over 388,000 jobs. In 2020, tourism’s share of GDP had dropped to 0.8%, with over 40,000 jobs lost to that point.
Recently, the Sri Lankan government introduced a ban on foreign-made chemical fertilizers. The ban was meant to counter the depletion of the country’s foreign currency reserves.
However, with only local, organic fertilizers available to farmers, a massive crop failure occurred and Sri Lankans were subsequently forced to rely even more heavily on imports, further depleting reserves.
In early April this year, massive protests calling for President Gotabaya Rajapaksa’s resignation, sparked in Sri Lanka’s capital city, Colombo.
In May, pro-government supporters brutally attacked protesters. Subsequently, Prime Minister Mahinda Rajapaksa, brother of President Rajapaksa, stepped down and was replaced with former PM, Ranil Wickremesinghe.
Recently, the government approved a four-day work week to allow citizens an extra day to grow food, as prices continue to shoot up. Food inflation increased over 57% in May.
Additionally, the increasing prices on grain caused by the war in Ukraine and rising fuel prices globally have played into an already dire situation in Sri Lanka.
The Key Information
“Our economy has completely collapsed.”
Prime minister Ranil Wickremesinghe to Parliament last week.
One of the main causes of the economic crisis in Sri Lanka is the reliance on imports and the amount spent on them. Let’s take a look at the numbers:
- 2021 total imports = $20.6 billion USD
- 2022 total imports (to March) = $5.7 billion USD
In contrast, the most recent reported foreign currency reserve levels in the country were at an abysmal $50 million, having plummeted an astounding 99%, from $7.6 billion in 2019.
Some of the top imports in 2021, according to the country’s central bank were:
- Refined petroleum = $2.8 billion
- Textiles = $3.1 billion
- Chemical products = $1.1 billion
- Food & beverage = $1.7 billion
Of course, without the cash to purchase these goods from abroad, Sri Lankans face an increasingly drastic situation.
Additionally, the debt Sri Lanka has incurred is huge, further hampering their ability to boost their reserves. Recently, they defaulted on a $78 million loan from international creditors, and in total, they’ve borrowed $50.7 billion.
The largest source of their debt is by far due to market borrowings, followed closely by loans taken from the Asian Development Bank, China, and Japan, among others.
What it Means
Sri Lanka is home to more than 22 million people who are rapidly losing the ability to purchase everyday goods. Consumer inflation reached 39% at the end of May.
Due to power outages meant to save energy and fuel, schools are currently shuttered and children have nowhere to go during the day. Protesters calling for the president’s resignation have been camped in the capital for months, facing tear gas from police and backlash from president Rajapaksa’s supporters, but many have also responded violently to pushback.
India and China have agreed to send help to the country and the the International Monetary Fund recently arrived in the country to discuss a bailout. Additionally, the government has sent ministers to Russia to discuss a deal for discounted oil imports.
A Foreshadowing for Low Income Countries
Governments need foreign currency in order to purchase goods from abroad. Without the ability to purchase or borrow foreign currency, the Sri Lankan government cannot buy desperately needed imports, including food staples and fuel, causing domestic prices to rise.
Furthermore, defaults on loan payments discourage foreign direct investment and devalue the national currency, making future borrowing more difficult.
What’s happening in Sri Lanka may be an ominous preview of what’s to come in other low and middle-income countries, as the risk of debt distress continues to rise globally.
The Debt Service Suspension Initiative (DSSI) was implemented by G20 countries, suspending nearly $13 billion in debt from the start of the pandemic until late 2021.
Some DSSI and LIC countries facing a high risk of debt distress include Zambia, Ethiopia, and Tajikistan, to name a few.
Going forward, Sri Lanka’s next steps in managing this situation will either serve as a useful example for other countries at risk or a warning worth heeding.
Note: The debt breakdown in the above visual represents total outstanding external debt owed to foreign creditors rather total debt.
Interest Rate Hikes vs. Inflation Rate, by Country
Inflation rates are reaching multi-decade highs in some countries. How aggressive have central banks been with interest rate hikes?
Interest Rate Hikes vs. Inflation Rate, by Country
Imagine today’s high inflation like a car speeding down a hill. In order to slow it down, you need to hit the brakes. In this case, the “brakes” are interest rate hikes intended to slow spending. However, some central banks are hitting the brakes faster than others.
This graphic uses data from central banks and government websites to show how policy interest rates and inflation rates have changed since the start of the year. It was inspired by a chart created by Macrobond.
How Do Interest Rate Hikes Combat Inflation?
To understand how interest rates influence inflation, we need to understand how inflation works. Inflation is the result of too much money chasing too few goods. Over the last several months, this has occurred amid a surge in demand and supply chain disruptions worsened by Russia’s invasion of Ukraine.
In an effort to combat inflation, central banks will raise their policy rate. This is the rate they charge commercial banks for loans or pay commercial banks for deposits. Commercial banks pass on a portion of these higher rates to their customers, which reduces the purchasing power of businesses and consumers. For example, it becomes more expensive to borrow money for a house or car.
Ultimately, interest rate hikes act to slow spending and encourage saving. This motivates companies to increase prices at a slower rate, or lower prices, to stimulate demand.
Rising Interest Rates and Inflation
With inflation rates hitting multi-decade highs in some countries, many central banks have announced interest rate hikes. Below, we show how the inflation rate and policy interest rate have changed for select countries and regions since January 2022. The jurisdictions are ordered from highest to lowest current inflation rate.
|Jurisdiction||Jan 2022 Inflation||May 2022 Inflation||Jan 2022 Policy Rate||Jun 2022 Policy Rate|
The Euro area has 3 policy rates; the data above represents the main refinancing operations rate. Inflation data is as of May 2022 except for New Zealand and Australia, where the latest quarterly data is as of March 2022.
The U.S. Federal Reserve has been the most aggressive with its interest rate hikes. It has raised its policy rate by 1.5% since January, with half of that increase occurring at the June 2022 meeting. Jerome Powell, the Federal Reserve chair, said the committee would like to “do a little more front-end loading” to bring policy rates to normal levels. The action comes as the U.S. faces its highest inflation rate in 40 years.
On the other hand, the European Union is experiencing inflation of 8.1% but has not yet raised its policy rate. The European Central Bank has, however, provided clear forward guidance. It intends to raise rates by 0.25% in July, by a possibly larger increment in September, and with gradual but sustained increases thereafter. Clear forward guidance is intended to help people make spending and investment decisions, and avoid surprises that could disrupt markets.
Pacing Interest Rate Hikes
Raising interest rates is a fine balancing act. If central banks raise rates too quickly, it’s like slamming the brakes on that car speeding downhill: the economy could come to a standstill. This occurred in the U.S. in the 1980’s when the Federal Reserve, led by Chair Paul Volcker, raised the policy rate to 20%. The economy went into a recession, though the aggressive monetary policy did eventually tame double digit inflation.
However, if rates are raised too slowly, inflation could gather enough momentum that it becomes difficult to stop. The longer high price increases linger, the more future inflation expectations build. This can result in people buying more in anticipation of prices rising further, perpetuating high demand.
“There’s always a risk of going too far or not going far enough, and it’s going to be a very difficult judgment to make.” — Jerome Powell, U.S. Federal Reserve Chair
It’s worth noting that while central banks can influence demand through policy rates, this is only one side of the equation. Inflation is also being caused by supply chain issues, a problem that is more or less outside of the control of central banks.
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