The World’s 20 Most Profitable Companies
The biggest chunk of the earnings pie is increasingly split by fewer and fewer companies.
In the U.S. for example, about 50% of all profit generated by public companies goes to just 30 companies — back in 1975, it took 109 companies to accomplish the same feat:
|Year||Number of Firms Generating 50% of Earnings||Total Public Companies (U.S.)||Portion (%)|
This power-law dynamic also manifests itself at a global level — and perhaps it’s little surprise that the world’s most profitable companies generate mind-bending returns that would make any accountant blush.
Which Company Makes the Most Per Day?
Today’s infographic comes to us from HowMuch.net, and it uses data from Fortune to illustrate how much profit top global companies actually rake in on a daily basis.
The 20 most profitable companies in the world are listed below in order, and we’ve also broken the same data down per second:
|Rank||Company||Country||Profit per Day||Profit Per Second|
|#1||Saudi Aramco||🇸🇦 Saudi Arabia||$304,039,726||$3,519|
|#2||Apple||🇺🇸 United States||$163,098,630||$1,888|
|#3||Industrial & Commercial Bank of China||🇨🇳 China||$123,293,973||$1,427|
|#4||Samsung Electronics||🇰🇷 South Korea||$109,301,918||$1,265|
|#5||China Construction Bank||🇨🇳 China||$105,475,068||$1,221|
|#6||JPMorgan Chase & Co.||🇺🇸 United States||$88,969,863||$1,030|
|#7||Alphabet||🇺🇸 United States||$84,208,219||$975|
|#8||Agricultural Bank of China||🇨🇳 China||$83,990,411||$972|
|#9||Bank of America Corp.||🇺🇸 United States||$77,115,068||$893|
|#10||Bank of China||🇨🇳 China||$74,589,589||$863|
|#11||Royal Dutch Shell||🇬🇧 🇳🇱 UK/Netherlands||$63,978,082||$740|
|#13||Wells Fargo||🇺🇸 United States||$61,350,685||$710|
|#14||🇺🇸 United States||$60,580,822||$701|
|#15||Intel||🇺🇸 United States||$57,679,452||$668|
|#16||Exxon Mobil||🇺🇸 United States||$57,095,890||$661|
|#17||AT&T||🇺🇸 United States||$53,068,493||$614|
|#18||Citigroup||🇺🇸 United States||$49,438,356||$572|
|#19||Toyota Motor||🇯🇵 Japan||$46,526,027||$538|
|#20||China Development Bank||🇨🇳 China||$45,874,795||$531|
The Saudi Arabian Oil Company, known to most as Saudi Aramco, is by far the world’s most profitable company, raking in a stunning $304 million of profits every day. When translated to a more micro scale, that works out to $3,519 per second.
You’ve likely seen Saudi Aramco in the news lately, though for other reasons.
The giant state-owned company has been rearing to go public at an aggressive $2 trillion valuation, but it’s since delayed that IPO multiple times, most recently stating the listing will take place in December 2019 or January 2020. Company-owned refineries were also the subject of drone attacks last month, which took offline 5.7 million bpd of oil production temporarily.
Despite these challenges, Saudi Aramco still stands pretty tall — after all, such blows are softened when you churn out the same amount of profit as Apple, Alphabet, and Facebook combined.
Numbers on an Annual Basis
Bringing in over $300 million per day of profit is pretty hard to comprehend, but the numbers are even more unfathomable when they are annualized.
|#1||Saudi Aramco||🇸🇦 Saudi Arabia||$110,974,500,000|
|#2||Apple||🇺🇸 United States||$59,531,000,000|
|#3||Industrial & Commercial Bank of China||🇨🇳 China||$45,002,300,000|
|#4||Samsung Electronics||🇰🇷 South Korea||$39,895,200,000|
|#5||China Construction Bank||🇨🇳 China||$38,498,400,000|
|#6||JPMorgan Chase & Co.||🇺🇸 United States||$32,474,000,000|
|#7||Alphabet||🇺🇸 United States||$30,736,000,000|
|#8||Agricultural Bank of China||🇨🇳 China||$30,656,500,000|
|#9||Bank of America Corp.||🇺🇸 United States||$28,147,000,000|
|#10||Bank of China||🇨🇳 China||$27,225,200,000|
|#11||Royal Dutch Shell||🇬🇧 🇳🇱 UK/Netherlands||$23,352,000,000|
|#13||Wells Fargo||🇺🇸 United States||$22,393,000,000|
|#14||🇺🇸 United States||$22,112,000,000|
|#15||Intel||🇺🇸 United States||$21,053,000,000|
|#16||Exxon Mobil||🇺🇸 United States||$20,840,000,000|
|#17||AT&T||🇺🇸 United States||$19,370,000,000|
|#18||Citigroup||🇺🇸 United States||$18,045,000,000|
|#19||Toyota Motor||🇯🇵 Japan||$16,982,000,000|
|#20||China Development Bank||🇨🇳 China||$16,744,300,000|
On an annual basis, Saudi Aramco is raking in $111 billion of profit per year, and that’s with oil prices sitting in the $50-$70 per barrel range.
To put this number in perspective, take a look at Chevron. The American oil giant is one of the 20 biggest companies on the S&P 500, but it generated just $15 billion in profit in 2018 and currently sits at a $221 billion market capitalization.
That puts Chevron’s profits at roughly 10% of Aramco’s — and if Aramco does IPO at a $2 trillion valuation, that would put Chevron at roughly 10% of its market cap, as well.
3D Map: The U.S. Cities With the Highest Economic Output
The total U.S. GDP stands at a whopping $21 trillion, but which metro areas contribute to the most in terms of economic output?
3D Map: The U.S. Cities With the Highest Economic Output
At over $21 trillion, the U.S. holds the title of the world’s largest economy—accounting for almost a quarter of the global GDP total. However, the fact is that a few select cities are responsible for a large share of the country’s total economic output.
This unique 3D map from HowMuch puts into perspective the city corridors which contribute the most to the American economy at large.
Top 10 Metros by Economic Output
The visualization pulls the latest data from the U.S. Bureau of Economic Analysis (BEA, 2018), and ranks the top 10 metro area economies in the country.
One thing is immediately clear—the New York metro area dwarfs all other metro area by a large margin. This cluster, which includes Newark and Jersey City, is bigger than the metro areas surrounding Los Angeles and Chicago combined.
|Rank||Metro Area||State codes||GDP (2018)|
|#1||New York-Newark-Jersey City||NY-NJ-PA||$1.77T|
|#2||Los Angeles-Long Beach-Anaheim||CA||$1.05T|
|#7||Houston-The Woodlands-Sugar Land||TX||$0.48T|
Coming in fourth place is San Francisco on the West Coast, with $549 billion in total economic output each year. Meanwhile in the South, the Dallas metroplex brings in $478 billion, placing it sixth in the ranks.
It’s worth noting that using individual metro areas is one way to view things, but geographers also think of urban life in broader terms as well. Given the proximity of cities in the Northeast, places like Boston, NYC, and Washington, D.C. are sometimes grouped into a single megaregion. When viewed this way, the corridor is actually the world’s largest in economic terms.
U.S. States: Sum of Its Parts
Zooming out beyond just these massive cities demonstrates the combined might of the U.S. in another unique way. Tallying all the urban and rural areas, every state economy can be compared to the size of entire countries.
According to the American Enterprise Institute, the state of California brings in a GDP that rivals the United Kingdom in its entirety.
By this same measure, Texas competes with Canada in terms of pure economic output, despite a total land area that’s 15 times less that of the Great White North.
With COVID-19 continuing to impact parts of the global economy disproportionately, how will these kinds of economic comparisons hold up in the future?
Shapes of Recovery: When Will the Global Economy Bounce Back?
Economic recovery from COVID-19 could come in four shapes—L, U, W, and V. What do they mean, and what do global CEOs see as the most likely?
The Shape of Economic Recovery, According to CEOs
Is the glass half full, or half empty?
Whenever the economy is put through the ringer, levels of optimism and pessimism about its potential recovery can vary greatly. The current state mid-pandemic is no exception.
This graphic first details the various shapes that economic recovery can take, and what they mean. We then dive into which of the four scenarios are perceived the most likely to occur, based on predictions made by CEOs from around the world.
The ABCs of Economic Recovery
Economic recovery comes in four distinct shapes—L, U, W, and V. Here’s what each of these are characterized by, and how long they typically last.
This scenario exhibits a sharp decline in the economy, followed by a slow recovery period. It’s often punctuated by persistent unemployment, taking several years to recoup back to previous levels.
Also referred to as the “Nike Swoosh” recovery, in this scenario the economy stagnates for a few quarters and up to two years, before experiencing a relatively healthy rise back to its previous peak.
This scenario offers a tempting promise of recovery, dips back into a sharp decline, and then finally enters the full recovery period of up to two years. This is also known as a “double-dip recession“, similar to what was seen in the early 1980s.
In this best-case scenario, the sharp decline in the economy is quickly and immediately followed by a rapid recovery back to its previous peak in less than a year, bolstered especially by economic measures and strong consumer spending.
Another scenario not covered here is the Z-shape, defined by a boom after pent-up demand. However, it doesn’t quite make the cut for the present pandemic situation, as it’s considered even more optimistic than a V-shaped recovery.
Depending on who you ask, the sentiments about a post-pandemic recovery differ greatly. So which of these potential scenarios are we really dealing with?
How CEOs Think The Economy Could Recover
The think tank The Conference Board surveyed over 600 CEOs worldwide, to uncover how they feel about the likelihood of each recovery shape playing out in the near future.
The average CEO felt that economic recovery will follow a U-shaped trajectory (42%), eventually exhibiting a slow recovery coming out of Q3 of 2020—a moderately optimistic view.
However, geography seems to play a part in these CEO estimates of how rapidly things might revert back to “normal”. Over half of European CEOs (55%) project a U-shaped recovery, which is significantly higher than the global average. This could be because recent COVID-19 hotspots have mostly shifted to other areas outside of the continent, such as the U.S., India, and Brazil.
Here’s how responses vary by region:
|Gulf Region (N=16)||57%||26%||17%||-|
In the U.S. and Japan, 23% of CEOs expect a second contraction to occur, meaning that economic activity could undergo a W-shape recovery. Both countries have experienced quite the hit, but there are stark differences in their resultant unemployment rates—15% at its peak in the U.S., but a mere 2.6% in Japan.
In China, 21% of CEOs—or one in five—anticipate a quick, V-shaped recovery. This is the most optimistic outlook of any region, and with good reason. Although economic growth contracted by 6.8% in the first quarter, China has bounced back to a 3.2% growth rate in the second quarter.
Finally, Gulf Region CEOs feel the most pessimistic about potential economic recovery. In the face of an oil shock, 57% predict the economy will see an L-shaped recovery that could result in depression-style stagnation in years to come.
The Economic Recovery, According to Risk Analysts
At the end of the day, CEO opinions are all over the map on the potential shape of the economic recovery—and this variance likely stems from geography, cultural biases, and of course the status of their own individual countries and industries.
Despite this, portions of all cohorts saw some possibility of an extended and drawn-out recovery. Earlier in the year, risk analysts surveyed by the World Economic Forum had similar thoughts, projecting a prolonged recession as the top risk of the post-COVID fallout.
It remains to be seen whether this will ultimately indeed be the trajectory we’re in store for.
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