The 10 richest American companies over 10 years

Discover the ranking of the 10 richest American companies according to their cumulative profits over the past 10 years.

What is a company’s net income?

The net result of a company corresponds to the turnover and any exceptional income (such as disposals of assets for example) subtracted from all of its expenses (operational, financial, accounting, social and tax, and exceptional) subtracted minority interests.

In simpler terms:

All receipts (sales = turnover + any exceptional and/or accounting income)

All direct, indirect and accounting expenses of all kinds.

=

Annual Net Income (Profit or Loss)

Read also our Ranking of the 10 richest French companies

Why study the profit and profitability of a company before investing?

A company’s ability to make profits is important because it is synonymous with economic efficiency. This is also the main motivation of private companies.

The shareholder may also be interested in the profitability of his investments rather than the quantity of profits. That is to say, at what price does he pay for this profitable capacity? To help in this sense, there is the concept of PER (Price Earnings Ratio). This ratio expressed in years measures the number of years required to reach the share price.

It is calculated as follows: Share price / EPS (Earnings Per Share).

Thus, a PER of 10 means that at the current level of EPS (and assuming it remains stable), it will take 10 years of EPS to reach the share price.

Also discover our guide How to invest in the stock market in 2022? Our step-by-step guide

How Café de la Bourse calculated the TOP 10 US companies with the highest profits?

We have accumulated the net results (group share) of the companies (profits or losses) over the period from 2012 to 2021, i.e. a cumulative period of 10 years.

This ranking reveals the cumulative benefits over the period studied, not to be confused with three other concepts:

  • the profit margin on turnover, expressed as an amount or as a percentage, determined by the ratio between profit and turnover;
  • the shareholder’s profitability, determined by the ratio between the net profit and the current market capitalization (current value of the company on the stock market). This is another approach to calculating the PER, expressed as an annual percentage;
  • the shareholder’s return corresponding to the dividends (coupons) he receives in relation to the current valuation of the shares he holds, expressed as a percentage.

In summary, we applied this formula below to create our ranking of the 10 US companies that have made the most profits over the long term:

Net results (profits or losses) accumulated from 2012 to 2021

The following formula is used to determine the shareholder’s profit return (not to be confused with the dividend) expressed as a percentage:

Net result(s) (period X) / market capitalization

TOP 10 US companies with the highest profits for 10 years

This article is for subscribers only. You can read the rest of the article by subscribing.

Premium subscription details

  • Stock picks of the moment
  • Stock and sector analyzes
  • TOP stocks on the stock market
  • Investing in the stock market training step by step
  • Ebook Anticipating the Markets with Technical Analysis
  • CAC 40 portfolio simulation tool
  • “Academy Grant” videoconferences with an expert