The pandemic, coupled with the advent of new ways of going public (such as SPAC), some firms have found themselves reaching growth at record pace. Growth does not necessarily translate to profitability. Here’s a look at top 10 companies, based on profitability versus the revenues, as listed by Fortune 500 in Aug 2021.

Note: The industry classification below is based on the SIC number. The Standard Industrial Classification Codes that appear in a company's disseminated EDGAR filings indicate the company's type of business.


10: Verizon Communications

Industry: 4813 - Telephone Communications (No Radiotelephone)

Revenue: $128B

Profits: $17,80B


9: Bank of America:

Industry: 6021-  NATIONAL COMMERCIAL BANKS

Revenue: $93B

Profits: $17,89B


8: Intel:

Industry: 3674 - SEMICONDUCTORS & RELATED DEVICES

Revenue: $77B

Profits: $20,89B


7: Amazon:

Industry: 7374 - SERVICES-COMPUTER PROCESSING & DATA PREPARATION

Revenue: $386B

Profits: $21,33B


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6: JP Morgan Chase:

Industry: 6021 - NATIONAL COMMERCIAL BANKS

Revenue: $129B

Profits: $29,13B


5: Facebook:

Industry: 7374 - SERVICES-COMPUTER PROCESSING & DATA PREPARATION

Revenue: $85B

Profits: $29,14B


4: Alphabet:

Industry: 7370 - Services-Computer Programming, Data Processing, Etc.

Revenue: $182B

Profits: $40,26B


3: Berkshire Hathaway:

Industry: 6331 - Fire, Marine & Casualty Insurance

Revenue: $245B

Profits: $42,52B


2: Microsoft:

Industry: 7372 - Services-Prepackaged Software

Revenue: $143B

Profits: $44,28B


1: Apple:

Industry: 3571 - Electronic Computers

Revenue: $274B

Profits: $57,41B


Just in case it missed your radar, the top-10 revenue based companies are either technology or financial firms. Interestingly, Amazon has the highest revenue, but sits at 7, based on profitability.


This should be a key takeaway for any business, that higher revenues, while desirable, do not necessarily translate to profits. Therefore it’s critical to know and manage the basic financial tenants to ensure profitable outcomes.