Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

10 Most Profitable Companies in the World in 2020

As times seem uncertain and many companies seem to be on the brink of collapse, or have even collapsed due to the pandemic, let’s change tactics and take a look at the 10 most profitable companies in the world in 2020. There is a difference between the biggest companies in the world and the most profitable. For example, Amazon is one of the biggest companies in the entire world, when you take into considerations its revenues and the number of people it employs, but is it also the most profitable? The answer is no. In fact, Amazon made losses for several years as it made gains in market share, and is now almost a monopoly with little oversight. Even now, though it has started turning profits and is in the top 100 profitable companies, it still fails to make our list, as the profits are not significant enough yet. In fact, Walmart is the company with the highest revenue in the world, yet it failed to make our list. In fact, none of the top 5 companies with the highest revenues in the world made the list.

That doesn’t mean that you won’t find familiar big names in our list. In fact it is quite likely that you’ll know most, if not all of the companies especially since most of them are major United States companies. The US has been called a capitalist’s dream, and has produced huge companies with revenues surpassing the GDPs of several nations. It is the only country in the world to produce trillion dollar companies, four of them at last count, which is simply massive.

In fact, 7 of the 10 companies on our list are from the United States of America, with one contribution each from China, Russia and Saudi Arabia. To determine our rankings, we didn’t just take a look at their profits, which were available here, but we also considered the return on its total assets. There are a myriad number of ways that once can assess the profitability of a company, employing dozens of ratios such as acid test ratio, liquidity ratio, return on capital employed and return on assets. We have used the total profits and return on assets for our ranking, as the return on assets shows what the company is making back on every dollar it invests on its assets. If you want to compare this list to previous years, you may be interested in the most profitable companies in the world in 2017.

10. Johnson & Johnson (NYSE:JNJ)

While Johnson & Johnson has been in the news in recent years due to the massive court cases successfully once against them, with one jury verdict hitting them with an astounding $8 billion in fines, it is still one of the biggest companies out there, with profits of $17.2 billion and a strong return on assets of 11.1$.

Johnson & Johnson (NYSE:JNJ)

Pixabay/Public Domain

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
This is a FREE report from Insider Monkey. Credit Card is NOT required.