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. 

RELATED TERMS
  1. Fortune 500

    An annual list of the 500 largest companies in the United States ...
  2. Fortune 100

    An annual list of the 100 largest public and privately-held companies ...
  3. Annual Turnover

    The percentage rate at which a mutual fund or exchange-traded ...
  4. Mergers and Acquisitions - M&A

    A merger is a combination of two companies to form a new company, ...
  5. Turnover Ratio

    Turnover ratio depicts how much of a portfolio has been replaced ...
  6. Annual Report

    An annual report is a publication that public corporations must ...
Related Articles
  1. Insights

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

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

    4 Best Techs Stocks to Own in 2018: Fortune

    Next year could be a good year for these tech stocks.
  3. 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?
  4. Investing

    The Most Popular Companies

    Are the most respected and admired companies also the best investments right now?
  5. Insights

    5 Fortune 500 Companies That No Longer Exist

    Discover where the concept for the Fortune 500 list came from and learn about companies previously on the list that no longer exist.
  6. Investing

    ExxonMobil's Massive And Reliable Money Machine

    Year after year ExxonMobil has shown itself a reliable generator of extraordinary profits, making it the most solid of the integrated oil companies.
  7. 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.
  8. Managing Wealth

    What The Rich And Powerful Have In Common

    There's no sure formula to success, but focusing on these traits will help you on your way.
  9. Insights

    Clinton Mulled Apple, Starbucks, Coke CEOs as VPs (AAPL, SBUX)

    The latest dump of John Podesta's emails shows that Fortune 500 CEOs were one of the "food groups" the Clinton campaign considered to fill out the ticket.
  10. Managing Wealth

    How To Invest In Everyday Products

    Investors are often told to "invest in what you know." Find out what companies make the products you use daily.
RELATED FAQS
  1. What is the difference between the S&P 500 and the Fortune 500?

    Learn what the Fortune 500 and S&P 500 are, how the companies are chosen to be on the lists, and the main difference between ... Read Answer >>
  2. How should I use portfolio turnover to evaluate a mutual fund?

    Learn about the turnover rate for mutual funds, and understand the effect higher turnover may have on fund performance and ... Read Answer >>
  3. Why is deferred revenue listed as a liability on the balance sheet?

    Understand why deferred revenue is listed as a liability on a company's balance sheet. Learn what is needed to recognize ... Read Answer >>
  4. How do subscription business models work?

    Understand how a subscription business model works and why companies prefer a subscription business model over a traditional ... 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. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
  2. Cryptocurrency

    A digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of ...
  3. Financial Industry Regulatory Authority - FINRA

    A regulatory body created after the merger of the National Association of Securities Dealers and the New York Stock Exchange's ...
  4. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by companies seeking the capital to expand ...
  5. Cost of Goods Sold - COGS

    Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold in a company.
  6. Profit and Loss Statement (P&L)

    A financial statement that summarizes the revenues, costs and expenses incurred during a specified period of time, usually ...
Trading Center