Qatar Gulf News – Doha, Qatar, Tuesday, July 26th 2016. The leading companies in the world in 2015, by profit (in billion U.S. dollars) by Dr. Theodore.
What’s the World’s most Profitable Companies? This graph shows the leading companies worldwide by profits made in fiscal year 2015. Apple reported a profit of about 39.51 billion U.S. dollars in fiscal year 2015.
Earnings of the world’s most profitable companies, totalled $223.2b last year
Additional information on the world’s most profitable companies. In general, the world’s most profitable companies belong to a select number of industries. The prominence of companies belonging to the technology, petroleum, financial and communications industries highlights the strong demand for these products and services by consumers globally. Moreover, the oligopolistic nature of these industries in many countries allows them to charge a premium for their services and thus ensure they remain among the largest earners globally.
Technological advancement presents both opportunities and threats to the firms who currently dominate the corporate landscape. The profits and thus additional investment capital of these firms allows for research and developing into the advancements of the future. This not only affords them a first mover advantage but the ability to shape future development. That said, technological advancement also offers a threat to these firms and their market value. Investments by Royal Dutch Shell in renewable and bio energy sources are an example of the inability of firms to assume their products competitiveness and thus their profits are guaranteed.
Furthermore, profits have returned for many of the large financial firms following their role and their woes in the global financial crisis in the later years of the 2000’s. Their performance has coincided with the recovery of many of the major economies, particularly the United States.
While Chinese companies have joined the major players in many industries, financial firms from the country now hold four of the top ten spots in most profitable companies worldwide. The number of Chinese companies in the most profitable companies worldwide has risen alongside China’s rapid economic growth. However, their success is not limited to growth in the country’s domestic market. Subsequent to the foreign investment in China that begun following the reforms opening China’s economy under Deng Xiaoping in the late 1970s, Chinese companies have increasingly been investing and operating abroad.
Sources: GQN, Reuters, CAYE Global News, Energy Global News, Dr. Theodore’s Energy Library, CNN.