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What is the percentage distribution of companies at each revenue level?
Hello! Thanks for your question about the percentage distribution of companies at each revenue level.
The short version is that 75.58% of U.S. companies fall under the '0-1 million' revenue band, while only 0.05% of companies make up the '1 billion plus' revenue band. The details of the percentage distribution of companies by revenue as well as their average age can be found in this spreadsheet: https://docs.google.com/spreadsheets/d/1Y5HDBJzETf_dJCOXtmUkSyYTOL4e7v6_I6oYGuyqrRQ/edit?usp=sharing.
Below you will find a deep dive of my findings.
METHODOLOGY
I’ve searched extensively through academic databases, industry reports, corporate websites, and government databases to dig out authentic data. From my search, I found the percentage distribution of U.S. companies for each revenue band. Unfortunately, the average age of companies per revenue band is not publicly available. However, I was able to learn percentage distribution of companies based on their age. I have compiled my findings into the attached spreadsheet.
FINDINGS
The attached spreadsheet (https://docs.google.com/spreadsheets/d/1Y5HDBJzETf_dJCOXtmUkSyYTOL4e7v6_I6oYGuyqrRQ/edit?usp=sharing) contains the following information:
• Tab 1 — Distribution of the companies by revenue.
The companies are divided by the revenue bands used in the Compile report, and I have shown the total number of companies, percentage distribution of companies for each band, as well as the revenue generated by each band.
The revenue bands include companies with a revenue of $0-$1 billion. A graphical representation of the distribution is already preserved in this report, which uses data from the US Census and the IRS. It might be interesting to note that $1B+ companies, which made up 0.05% of the total distribution, generate more than half of the overall turnover.
• Tab 2 — Distribution of companies by their average age.
The average age of company per revenue band is not publicly available. However, I learned that average age of one-third of the businesses is between 6-20 years. I compiled the data about percentage distribution of average age of companies in tab 2.
ADDITIONAL INSIGHTS
This year's Fortune 500 list includes many of the companies in the $1B+ revenue band. These companies represent two-thirds of the US GDP, totaling $12 trillion in revenues and $19 trillion in market value. These companies combined employ 28.2 million people worldwide and saw $890 billion in profits in the last fiscal year.
Walmart tops the list this year with $485.9 billion in revenues, followed by Berkshire Hathaway, Apple, Exxon Mobil, and McKesson.
The rankings change a little in the 2016 Forbes Global 2000 rankings, with Berkshire leading the US rankings at #4 overall, followed by JPMorgan, Wells Fargo, Apple, and Exxon Mobil. These rankings differ from the Fortune 500 list because it includes profits, assets, and market value in its ranking system. The 2017 rankings change slightly, with Berkshire still in the top spot, followed by JPMorgan, Wells Fargo, Bank of America, and Apple.
In terms of private companies, the top 5 private companies in terms of revenue are Cargill, Koch Industries, Albertsons, Deloitte, and PricewaterhouseCoopers. The revenues for these private companies are less than for the top public companies in the US, with Cargill at $109.7 billion compared to Walmart at $485.9 billion.
CONCLUSION
To wrap it up, I provided percentage distribution of companies for each revenue band and percentage distribution of companies for their average age, since the average age of company per band is not publicly available. I have compiled my findings into the attached spreadsheet.
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