"The latest wealth list of Fortune Magazine in 2005 was released. Huaxia Daqian Group ranked tenth in the world's top 500, slightly behind last year. Jia Yapeng still maintains the second place in the world's richest man and the richest man in Chinese!" This is a report published in the media, but it can no longer cause too much excitement among the Chinese people.

Because as mentioned in this report, this result is a bit more regressive than last year.

In 2003, Daqian was already ranked tenth in the Fortune 500 in the world, and Boss Jia's second richest man has been the world's second rich man for almost four years. The Chinese people have long been accustomed to the wealth of Daqian Group and Boss Jia.

He even accused Daqian of performing poorly this year, so he was one less than last year.

But I still remember that when Daqian first became the tenth place in the world's top 500, the whole of China was filled with joy. Various media articles were hyped, and the Chinese people all had a strong sense of national pride. At that time, Boss Jia had almost reached the peak of his life for more than ten years.

However, recently, Daqian seems to have been stagnant. He has been stuck in the tenth and ninth positions for three consecutive years. It is difficult to go further and become the top five companies in the world.

Many people have published articles in the media, believing that Da Qian is not interested in making progress or something.

However, there are also people who understand Daqian and say that Daqian has tried his best. The reason why Daqian cannot go further is that there is a problem with the system, and then they start to know the old routine.

Anyway, no matter what the matter is, the public intellectuals can get it to the system for you.

The people have their own ideas and remarks, but in the eyes of the high-level officials in Daqian, this is a very ridiculous thing.

Because according to Fortune Magazine, the world's top company is Walmart, with a total revenue of US$287.9 ​​billion.

Of course, the senior executives of the hall do not know whether this data is accurate, but Daqian knows his data, that is, Daqian's total revenue in 2005 has reached US$368.2 billion, exceeding Walmart's total revenue of nearly US$80 billion.

Of course, this data has not been released to the public. In fact, since 2000, Daqian will no longer announce its total revenue at the annual meeting. This is too easy to be calculated by opponents, but it will still give 10% of the total profit to all employees.

Some people may think that Daqian's data is too exaggerated. The total revenue of US$368.2 billion is like a fantasy. After all, before 2000, Daqian's total revenue seemed to be around US$600 to 70 billion. When will it reach the scale of US$368.2 billion?

This is because today is different from the past, and Daqian is no longer the Daqian that was 2,000 years ago.

First of all, many people have always thought there was a problem with the calculation method of the Fortune 500. Many people said that the Fortune 500 should not be calculated based on the total revenue, but on the total profit.

Because calculated based on total revenue is unfair to many companies.

For example, now searching for 51 companies with the highest market value in the US stock market, this company's annual revenue is only US$98.7 billion, not even half of Walmart. Logically speaking, Walmart should be the first.

But Walmart, the world's number one, ranks fourth.

The reason for such a change is mainly because of profit issues. Although Walmart's revenue is very high, its profit in the year has only just exceeded 10 billion US dollars.

However, Google's profit has reached US$28 billion, which is more than twice as high as Walmart. For investors, profit is the most favorable structural point to support the stock price.

After all, there are still a large number of companies around the world that have annual revenue of over 100 billion yuan, but in turn, there are still companies that have to lose dozens or tens of billions of yuan each year. It is impossible for these companies to explode in the stock market.

So why is there such a situation where revenue is huge but profit is thin?

The main thing is the restrictions of the industry in which they are engaged.

Walmart is engaged in the retail industry, with a large scale and a large number of products sold. It is normal for a revenue exceeding 200 billion US dollars per year, because customers need to buy so many things.

However, the retail industry is famous for its low profit margins and pays attention to small profits but quick turnover. Even though Walmart has come up with various means to increase its profits, it can't stop a series of huge fixed costs such as employee expenses, store expenses, etc., and the ultimate profit is thin.

To be honest, it is already a great thing for Walmart to make a profit. Haven’t you seen that the annual revenue of many large supermarkets in China is as high as the annual revenue, the sharp losses. They live all by means of financial means. Once they leave finance and bank loans, they will die immediately.

So Walmart's global stalls are so big that it can still make profits. It can only be said that Walmart's operators are so awesome!

On the contrary, Google's operating costs are much lower. Currently, Google's main costs are server overhead, programmer overhead, and some R&D expenses, which are gone.

Google has almost no expenses in the traditional industry in terms of stores, channels, transportation and other entities, so it would be strange if the profits would be low.

However, it is precisely because of this that Google's current profits mainly rely on advertising, membership fees, etc., but these expenses are only a few hundred dollars a year for a person's expenses, and its revenue will not be much higher in the year.

On the contrary, if a person spends at least a few thousand dollars in supermarkets every year, Walmart's revenue will naturally increase.

Similarly, there are other companies that also rank among the top 10 in the world's top 500.

The top ten are Walmart, BP, General Motors, ExxonMobil, Royal Shell, DaimlerChryslers, Toyota, Ford Motor, Total Oil, and Daqian Group.

Except for Walmart and Daqian, all of them are oil companies or automobile companies. Together, they are the entire automobile industry.

The industry will be so concentrated, but naturally it is due to revenue.

Even if a car is in the United States, it costs about 30,000 US dollars on average, while the annual sales of car in the United States are about 18 million, which adds up to 560 billion US dollars in total revenue.

As for globally, this data has increased by 5 times to the level of US$2.8 trillion. It is natural for such an industry to produce revenue from the top 10 in the world.
Chapter completed!