Fortune 500

Definition

The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. companies by total revenue for their respective fiscal years. These companies are publicly and privately held and span various industries, providing insights into market leaders in the business world.

5 Must Know Facts For Your Next Test

1. The ranking is based on total revenue, including gross sales and other operating revenues.
2. Fortune 500 data can be used in regression analysis to predict financial trends and performance metrics.
3. Companies on the list represent a significant portion of U.S. GDP, making them critical for economic analysis.
4. In linear regression analysis, variables such as company size (measured by revenue) can be predictors for stock performance or market share.
5. Prediction intervals from regression models using Fortune 500 data can help estimate future revenues or growth potential of these companies.

Review Questions

• What criteria are used to rank companies in the Fortune 500?
• How can Fortune 500 data be integrated into regression analysis for financial predictions?
• Why is it important to consider the Fortune 500 when analyzing economic trends?

Related terms

Linear Regression Analysis: A statistical method used to model the relationship between a dependent variable and one or more independent variables.

Prediction Interval: A range of values that estimates where a future observation will fall with a certain probability given what has been observed.

Market Share: The percentage of an industry's sales that a particular company controls within its sector.