2023-09-18 11:43:13
The FAZ publishes an annual list of the 200 largest German companies. The magazine “Fortune” also publishes similar lists for the 500 largest companies in the world and the USA. Large German companies are in international competition for customers, talent, suppliers and capital. In this respect, not national but global comparisons are appropriate as a yardstick. A company’s performance is reflected in its profit. The key figure measures the value a company adds to the expenditure on materials, labor and capital. Loss means destruction of value. Profits can also be seen as the “cost of survival”. If sufficient profits or even losses are not generated, there will be a lack of funds for innovation and future investments. In addition, raising capital becomes more expensive.
In last place
How do large German companies compare to their international competitors? In 2022, the 200 companies in the FAZ list (hereinafter “FAZ 200”) achieved average sales of 20.4 billion euros and a net profit after taxes (annual profit) of 915 million euros. The companies on the Global 500 list (hereinafter “Global 500”) had an average turnover of $81.9 billion and reported an after-tax profit of $5.8 billion. The 500 largest companies in the United States (hereinafter “American 500”) reported average sales of $36.2 billion and net income of $3.1 billion. This results in the following net sales returns: 4.5 percent for the FAZ 200, 7.1 percent for the Global 500 and 8.6 percent for the American 500.
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