DEFINITION of 'Fortune 1000'

The Fortune 1000 is an annual list of the 1000 largest American companies maintained by the popular magazine Fortune. The eligible companies are ranked by revenue generated from core operations, discounted operations, and consolidated subsidiaries. Since revenue is the basis for inclusion, every company is authorized to operate in the United States and files a 10-K or comparable financial statement with a government agency. In general, private organizations withhold information from the public and are not included on the list. Other companies excluded from the list include those that fail to report full financial statements for at least three quarters in the current fiscal year. 

BREAKING DOWN 'Fortune 1000'

The Fortune 1000 is still considered an important and prestigious list despite receiving considerably less notoriety than the more selective Fortune 500 rankings. The annual list draws significant interest from readers who follow the business sector and seek to learn about the influential leaders in the US economy. Walmart (WMT) has topped the list for 8 of the past 10 years, unseated only by ExxonMobil (XOM) in 2009 and 2012 when oil prices reached near term highs. Many investors view a fall in rank or failure to make the list as an indication of weakness for a company or an industry, whereas a move higher portends strength. Since the list is dictated by revenue, many of the companies at the top offer products that serve the most amount of people. Some of the products can include groceries and clothing found at Walmart, gas to fuel a vehicle from an ExxonMobil station or the widely owned iPhone produced by Apple (AAPL). For this reason, many business to business (B2B) software companies are unable to crack the upper echelons of the list. 

Limitations of the 'Fortune 1000'

The Fortune 1000 list offers a valuable gauge to the current state of the business sector. Yet, the list is overshadowed by the Fortune 500, which measures the top 500 companies measured by revenue. In many ways, the rapid turnover of companies listed near the bottom of the Fortune 1000 limits it from gaining the same mainstream acceptance as the smaller Fortune 500 list. For many years, researchers equated turnover as a proxy for positive economic churn and underlying strength in innovation and productivity. However, high churn isn't always a signal of strong business growth, instead it can mean an active merger and acquisition (M&A) environment, where large corporations purchase small companies. 

  1. Fortune 100

    An annual list of the 100 largest public and privately-held companies ...
  2. Wal-Mart Effect

    The Walmart effect is the economic impact that is felt by local ...
  3. Receivables Turnover Ratio

    Receivables turnover ratio is an accounting measure used to quantify ...
  4. Annual Turnover

    The percentage rate at which a mutual fund or exchange-traded ...
  5. Primary Listing

    The main stock exchange where a publicly traded company's stock ...
  6. Operating Revenue

    Income derived from sources related to a company's everyday business ...
Related Articles
  1. Insights

    Fact Sheet: What Is The Fortune 500 List?

    The Fortune 500 is a list most have heard of but don't know much about. Here, we present the basics with a few interesting facts.
  2. Investing

    Wal-Mart Tops Fortune 500 List

    Healthcare and pharma had the largest representation in the top 10, followed by the automotive sector.
  3. Small Business

    The 6 Biggest Fortune 500 Employers

    In 2015, five of the top six biggest Fortune 500 companies are retailers.
  4. Investing

    Walmart, Exxon Mobil and Apple Top the Fortune 500 List

    The annual Fortune 500 list has the usual suspects: think Walmart, Exxon Mobil, Apple and Berkshire Hathaway. But McKesson is a newcomer to the top five.
  5. Insights

    Fortune Names the 50 Most Powerful Women in Business (GM, GOOGL)

    Last year's most powerful female executive tops the list again.
  6. Investing

    Fortune Brands Home & Security: An Activist Investment Analysis (FBHS)

    Read about Bill Ackman's highly successful breakup of longtime holding company Fortune Brands in one of the most profitable examples of Wall Street activism.
  7. Investing

    4 Best Techs Stocks to Own in 2018: Fortune

    Next year could be a good year for these tech stocks.
  8. Trading

    Target Vs. Walmart: Who's Winning The Big Box War?

    Wal-Mart dwarfs Target in number of stores, total assets, and market cap. But which company is more profitable?
  9. Small Business

    Implementing A Small Business Social Media Strategy

    As social media continues to change the way people communicate, it has become an increasingly important tool for small businesses.
  1. What does it mean when they refer to the churn rate of a telecommunications company?

    Learn what companies in the telecommunications industry mean when they refer to a churn rate, and discover tactics companies ... Read Answer >>
  2. Which industries tend to have the most inventory turnover?

    Understand what inventory turnover measures and why it is good to have high inventory turnover. Learn what industries tend ... Read Answer >>
  3. What is a good turnover ratio for a mutual fund?

    Learn about mutual fund turnover ratios and why the ideal ratio may differ based on the type of mutual fund and your investment ... Read Answer >>
  4. What is the difference between revenue and sales?

    In accounting terms, sales make up one component of a business's revenue. Some businesses refer to sales as operating revenue ... Read Answer >>
  5. How is asset turnover calculated?

    Learn what the asset turnover ratio is, how it can be used to compare companies in the same sector, and how the ratio is ... Read Answer >>
  6. What does a high turnover ratio signify for an investment fund? (KNOW)

    Find out more about the turnover ratio, what the turnover ratio measures and what a high turnover ratio indicates about an ... Read Answer >>
Hot Definitions
  1. Liquidity

    Liquidity is the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's ...
  2. Federal Funds Rate

    The federal funds rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve ...
  3. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  4. Standard Deviation

    A measure of the dispersion of a set of data from its mean, calculated as the square root of the variance. The more spread ...
  5. Entrepreneur

    An entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture.
  6. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
Trading Center