10 most profitable companies in the world.
The profitability of companies is typically judged by their net income, which represents total earnings after all expenses, taxes, and costs are subtracted from total revenue.
There are a few criteria which are considered when comparing the profitability of companies. These criteria include revenue, profit margin and Return on Assets (RoA) among others. Professional analysts tend to focus more on the net income and profit margin to get a clearer picture of how much the company is making. “The social responsibility of business is to increase its profits,” economist Milton Friedman wrote in 1970.
The world is filled with companies making profits in millions and billions of dollars. Below, 10 of the world’s most profitable companies are revealed:
1. Saudi Arabian Oil Co.
Saudi Arabian Oil CO., also known as Saudi Aramco, is the national oil and gas company of Saudi Arabia with speciality in the production of petroleum and natural gas. The company’s history can be traced back to 1933. Saudi Aramco most notably operates the Ghawar Field (the world’s largest onshore oil field) and the Safaniya Field (the world’s largest offshore oil field). They also specialise in the production of industrial compounds from synthetic materials, with profits amounting to $300 million.
2. Berkshire Hathaway Inc.
Berkshire Hathaway Inc. specializes in property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing and retailing services. Berkshire Hathaway’s latest financial reports put its earnings at $424.23 billion, ranking it in second place amongst the world’s most profitable companies.
Source: Vanguardngr
