The four types of sales revenue – and which is best for your business

I want to share with you some important revenue generation concepts that will help you in your strategic analysis and planning efforts.

You’re unlikely to read about these concepts in a traditional business planning textbook, and very few accountants even know about them. Yet they are crucial to the development of your business.  What’s more, come to grips with these concepts and you will see business growth and development in an exciting, new light.

To illustrate these concepts further take a look at the following matrix:

As shown in the visual, revenue in your business can be classified into four categories – of which one category offers you the greatest potential for long term success. Let’s take a closer look at them.

First of all, a business can generate front end revenue and back end revenue.  Front end revenue is that which you receive from first-time customers, while back end revenue is what you get from existing customers.

Next is low value revenue vs high value revenue. Low value revenue is that which is generated from products and services where the unit sales transaction value is low, as is the gross margin. And high value revenue is that which comes from products and services where the sales transaction value and gross margins are high.

With these definitions in place we can classify the sales revenue in these broad terms:

Front end/low value revenue:  Low margin/transaction revenue to first-time customers.

Front end/high value revenue: High margin/transaction revenue to first time-customers.

Back end/low value revenue: Low margin/transaction revenue to existing customers

Back end/high value revenue: High margin/transaction revenue to existing customers.  These are your high value customers.

In the visual I’ve given each type of revenue a color, which is a rating of that type of rating.  Red = bad, orange = ok, Green = great.

Now, here’s what I’d like you to do.  Take a look at your revenue for say the past 6 months and segment it according to the definitions I’ve given you.  Put simply, work to identify what proportion of your revenue is green, red, or orange.

When you’ve done that, answer this question:

It’s true, in business the bigger the back end the better.  And all highly successful businesses have big back ends.

The cold hard reality is this.  If you generate mostly red revenue, it means your revenue stream model is severely flawed.  Businesses with mostly red revenue operate what I call the churn and burn model because it requires them to churn through customer after customer just to stay afloat.  The model is very short-sighted.

On the other hand, if a significant portion (over 60%) of your revenue is of the back end variety then it means you have a well structured revenue stream model and that it is operating effectively.  Naturally, the ideal situation to be in is when most of your back end revenue is green revenue.

And one other point. If you have a lot of green revenue you will likely find that it is being generated by a small proportion of your customer base (anywhere from 5-20% of your customers).

Take another look at the matrix at the two blue arrows.  They are there to remind you of the direction you need to head in your revenue generation efforts.  You start out in the left hand side by generating front end revenue.

But, to develop your business you need to need to move diagonally to the right and vertically. That is you need to generate back end revenue/high value revenue.

Some keys to developing back end high value revenue?

• Develop a strong strategic position and strategy
• Develop a back-end focused revenue stream model
• Create and develop a powerful sales process

World’s Top 15 Biotech Companies 2016

THE GLOBAL BIOTECHNOLOGY MARKET WAS ESTIMATED TO BE USD 330.3 BILLION IN 2015. THE MARKET IS GROWING AND THE TOP-15 BIOTECHNOLOGY PLAYERS ACCOUNT FOR A MARKET SHARE OF ~33% IN 2015. THESE ORGANIZATIONS ARE PRIMARILY LOCATED IN U.S. AND EUROPE. A COMPARATIVE ANALYSIS OF THE TOP 15 BIOTECHNOLOGY PLAYERS WAS DEVISED TO DEVELOP A RANKING FOR THESE ORGANIZATIONS. THE MODEL INCORPORATED EIGHT CRITERIA INCLUDING REVENUE, REVENUE GROWTH, OPERATING EXPENSE RATIO, INCOME PER SHARE, R&D BY SALES RATIO, INCOME PER EMPLOYEE, MARKET CAP AND ASSET TURNOVER RATIO. STATISTICAL SCORING WAS CONDUCTED BASED ON THESE CRITERIA TO ARRIVE AT THE FINAL SCORE BASED ON WHICH RANKS WERE DEVELOPED.

Analysis of top-15 biotechnology companies:

Sources: SEC filings, annual reports, Genetic Engineering & Biotechnology News and Forbes Media.

1. GILEAD SCIENCES INC. (U.S.)

Gilead is the top-ranked company in this list. The organization had highest revenues of USD 32,639 million in 2015. Income per share and income per employee is one of the highest for the company. Gilead also tops the market cap list in 2015. The operating expense ratio of the company is one of the lowest in 2015. The company manufactures research-based biopharmaceuticals with focus on human immunodeficiency virus (HIV), liver diseases such as chronic hepatitis C virus (HCV) infection and chronic hepatitis B virus (HBV) infection, oncology and inflammation, and serious cardiovascular and respiratory conditions.

2. CELGENE CORP. (U.S.)

Celgene ranks second in the list owing to its large revenue and high market cap. Another significant reason is the allocation of the high R&D budget in 2015. The company is engaged in the discovery, development and commercialization of therapies and treatment of cancer and inflammatory diseases through gene and protein regulation.

3. BIOGEN INC. (U.S.)

Biogen is the one of the largest company in terms of revenue and income per share in 2015. The company had asset turnover ratio of 55.20% in 2015. Biogen develops, markets and manufactures therapies for neurological, autoimmune and hematologic disorders.

4. AMGEN INC. (U.S.)

Amgen accounts for the second-largest revenue share of USD 21,662 million in 2015. The company’s income per share value was USD 9.15 in 2015. Amgen had one of the highest asset per share value in 2015. The primarily focus of the company is human therapeutics based on cellular and molecular biology.

5. REGENERON PHARMACEUTICALS, INC. (U.S.)

The revenue growth from 2014 to 2015 was 45.5% for Regeneron in 2015. The company also had one of the highest asset turnovers in 2015. The company is active in biopharmaceutical products marketing for eye diseases, colorectal cancer and a rare inflammatory conditions.

6. SHIRE, PLC (U.S.)

Shire had revenue of USD 6,416.70 million in 2015. The company had one of the lowest revenue growth of 6.5% from 2014 to 2015. The operating expense ratio was among the highest for the company calculated at 77.8%. The company focuses on therapies for rare diseases.

7. CSL LTD. (AUSTRALIA)

Australia-based company, CSL Ltd. accounts for one of the lowest operating expenses ratio at 27.98%. The asset turnover ratio of the company is the highest in 2015 and stands at 81.72%. The company develops, manufactures and markets vaccines, in vitro diagnostic products and plasma protein biotherapies.

8. NOVOZYME (DENMARK)

Novozyme is a Denmark based company and accounted for 95.1% of research and development to sales ratio in 2015. The company had one of the lowest income per employee in 2015. The company develops and produces industrial enzymes, microorganisms, and biopharmaceutical ingredients.

9. VERTEX PHARMACEUTICALS INC. (U.S.)

Vertex’s revenue for 2015 was one of the lowest but the company tops the list in revenue growth from 2014 to 2015 at 77.86%. The company had highest operating expense ratio at 145% resulting in low revenues. Furthermore, the company accounted for the highest R&D expenditure to sales ratio in 2015, measured at 96%. Vertex develops clinical development programs focused on cystic fibrosis, and has more than dozen ongoing research programs aimed life-threatening diseases.

10. ALEXION PHARMACEUTICALS INC. (U.S.)

The revenue for Alexion was USD 2,604.05 million in 2015. The company has lowest asset turnover ratio and one of the lowest income per share in 2015. The company had developed therapies for treatment of paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome and aims to develop enzyme replacement therapies for rare disorders.

11. ILLUMINA, INC. (U.S.)

Illumina’s revenues in 2015 were valued at USD 2,219.76 million. The company had one of the lowest expense ratio amongst others in 2015. Illumina develops, manufactures and markets systems for the analysis of genetic variation and function. It also provides sequencing and array-based solutions for genetic analysis, genotyping and whole-genome sequencing services.

12. GRIFOLS INTERNATIONAL, S.A. (SPAIN)

The revenue for the Spanish company was USD 4,167.88 million in 2015. Grifols had the lowest operating expense ratio in 2015, calculated at 24.6%. The company ranks 12th in the list owing to lowest R&D by sales ratio and income per employee in 2015. The company produces a variety of plasma derivatives.

13. UNITED THERAPEUTICS CORP. (U.S.)

United Therapeutics revenue was USD 1,465.76 million in 2015. The company had the lowest market cap in 2015. The company tops the list in income per employee category valued at USD 9.16 million. The company in engaged in development and commercialization of cardiovascular and infectious diseases and cancer treatment products.

14. BIOMARIN PHARMACEUTICAL INC. (U.S.)

BioMarine accounts for the lowest revenues and income (loss) per share value at USD 889.90 million and USD -1.07 in 2015. The company has one of the highest operating expense and lowest asset turnover ratios on 2015. BioMarine commercializes and produce therapies for mucopolysaccharidosis type I (MPS I) and phenylketonuria.

15. AGILENT TECHNOLOGIES (U.S.)

Agilent Technologies ranks lowest in the list owing to decline in revenue growth rate from 2014 to 2015. The company also had one of the lowest research and development budgets in 2015. Agilent is active in life sciences and diagnostics research in the field of cancer, cardiovascular diseases, diabetes, Alzheimer’s, Parkinson’s, and autism amongst others.

Business Models

The concept of competing on business models seems to be en vogue right now. Witness HBR’s recent “How to Design a Winning Business Model” (one article in an entire edition dedicated to business models) or “Why Companies Should Have Open Business Models” by MIT Sloan Management Review. But surprisingly, there is no general, agreed upon classification of business models.

Another recent article (link) claims to remedy this. It offers a business model classification based on a four by four matrix, defining the types of assets a company sells and the rights it grants customers to use those assets.

The four asset types are: 
• Financial assets (cash, stocks, bonds, insurance policies, etc. – anything with a right to potential future cash flows);
• Physical assets (both durable and non-durable goods, food, etc.);
• Intangible assets (patents, copyrights, but also knowledge, goodwill and brand value);
• Human assets.

The four ways companies can manage assets to generate revenues are:
• Creators sell ownership of products they created by transforming or assembling raw materials, components, etc. 
• Distributors resell products that they did not substantially change.
• Landlords sell the right to use an asset for a specific period of time (e.g. a hotel room or rental car). The authors of the article included in this category also companies like Microsoft who sell licenses, i.e. limited rights to use their intellectual property. 
• Brokers receive a fee for matching buyers and sellers without taking ownership of a product.

The framework has a number of advantages in that it allows comparisons across a variety of industries. But there are certainly also drawbacks: Some of the classifications seem a bit arbitrary or farfetched: Where do you classify Citigroup’s large retail banking business, or CBS’s TV business, for example? The concepts of “financial landlord” or “IP landlord” seem to be a bit of a stretch for some of these businesses. Or where do you put a pharma company: a creator of physical goods, or an IP landlord? Maybe those are just classifications and labels that we’re not (yet) used to.

One thing that sticks out very quickly is that many companies cannot be easily classified into one bucket. A company like Disney, for example, is a landlord (renting access to physical assets like theme parks) but also a licensor of intellectual property. As a matter of fact, Disney’s business model has shifted dramatically over time, from over 65% “landlord” in 1984 to largely licensing intellectual property (15% of revenue in 1984, 63% in 2009).

The authors also looked at which business models are prevalent, and which ones are valued by the stock market more than others. They analyzed over 10,000 publicly traded companies in the US, classified their various businesses into the business model buckets described above, and created groups that then allowed them to track stock market performance. Some of their key findings:

• Only about 10 of the 16 potential squares in the four by four matrix have a significant number of companies and revenues, some business models are not really applicable or legal.
• 57% of the revenue of all the US listed firms is linked to “creators,” 28% to “landlords,” and 14% to “distributors.” Brokers only generate 1% of all revenues. 
• 81% of the revenue of all the US listed firms is linked to physical assets, 9% to financial assets. 
• Creators of physical assets, in particular a subgroup of “innovators” within this bucket, generated the biggest stock market returns.

I find this to be a very helpful framework for companies to think through their various businesses: Where are we today? How has our business changed over the past 10 years? How do we compare to traditional competitors and emerging players? Where do we have the competencies to adjust our business model?

Top 10 pharmaceutical companies in 2016

With the number of pharmaceutical giants increasing every day, competition within the industry is fierce. However, there are ten companies that really stand out from the pack. These companies are consistently breaking records, administering new cures and creating new vaccines.

The global importance of the pharmaceutical industry has reached an all-time high and it doesn’t show any signs of stopping. The total worldwide revenue for the industry has reached almost $1 trillion and is poised to grow further in the coming years.

On the basis of revenue and market impact, below are the top ten pharmaceutical companies worldwide in 2016:

10. GlaxoSmithKline

Revenue: $23.92 Billion

GSK is a global healthcare company dedicated to treating acute and chronic diseases and is a leader in developing, producing and distributing vaccines all over the world. It operates under three main branches: pharmaceuticals, vaccines and consumer healthcare. GSK has a presence in over 150 countries and is committed to even further growth in the upcoming year. According to their 2015 Annual report, GSK saw major success this year in products involving wellness, oral health, nutrition and skin health.

9.AstraZeneca

Revenue: $24.7 billion

This British-Swedish giant believes in pushing boundaries and delivering life-changing results. This year, AstraZeneca was most successful with their drug, Crestor, which is used to manage cholesterol. In the area of oncology, their drugs Zoladex and Faslodex also contributed to their success. AstraZeneca currently has hundreds of opportunities for both professionals and students. Their working culture has earned awards such as the 100 Best Companies for Working Mothers, and the Most in Demand Employers on LinkedIn.

8. Gilead

Revenue: $32.6 Billion

Gilead have seen a large jump in revenue since 2014, when they finished at $24.9 billion. Thanks to this increase, they are currently sitting two places higher than last year. This large jump was due, in large, to their drugs Sovaldi and Harvoni, which were big sellers in Japan. Gilead took major strides in the fight against HIV/AIDS, liver disease, and cancer. Gilead’s work with medications for HIV/AID has become a large part of their business with drugs such as Atripla, Emtriva, and Viread. Since they were founded 30 years ago, their employee network has grown to over 8,000 in six continents.

7.Sanofi Genzyme

Revenue: $34.5 billion

Genzyme began as a small startup and was then acquired by Sanofi in 2011, which gave them the backing they needed to be an industry leader. In addition to their strong partnerships, they can attribute success to their established products, vaccines and diabetes drugs. Sanofi Genzyme is also well known for their patented oral drug for multiple sclerosis. Recently, they created a partnership with Johns Hopkins School of Medicine in an effort to develop drugs for neurodegenerative diseases.

6.Merck

Revenue: $39.5 billion

Merck focuses on pharmaceuticals, animal health and consumer care. Pharmaceuticals account for the majority of Merck’s business with drugs such as Januvia, Zetia, and Janumet coming first on the list of 2015 top earners. Their consumer brand, Coppertone, helps to battle skin cancer and is sold worldwide. With growing markets and an increasing reach, this pharmaceutical powerhouse is expecting continued growth and innovation in the years to come.

5.Roche

Revenue:  $48.1 billion

Roche specialises in biotech, oncology, in vitro diagnostics and hospital markets. They employ almost 100,000 people in over 100 countries. This year, Roche has identified the drug, Ocrelizumab, which has achieved positive results in relapsing multiple sclerosis. Roche has also achieved success this year with oncology drugs Avastin, Herceptin and Perjeta, all of which earned significant growth.

4.Pfizer

Revenue: $48.9 billion

Pfizer finds itself in the same spot as last year. This organisation considers itself to be one of the world’s premiere biopharmaceutical companies, and for good reason. Pfizer became a household name thanks to their consumer products like Lipitor, Lyrica and Viagra. This year, the Prevnar family of vaccines alone generated $6.25 billion, with Lyrica close behind generating $4.83 billion. In 2015, Pfizer had 40 therapies in research and development in hopes for an even stronger 2016. Looking for pharmaceutical jobs? Pfizer was ranked as one of the happiest companies to work for in 2015 by Forbes.

3.Novartis

Revenue: $49.4 billion

With their head office in Basel, Switzerland and several other locations worldwide, Novartis has proven itself as a true leader in the pharmaceutical industry. This year, Novartis experienced success with oncology, immunology and dermatology, eye care and biosimilars. The most successful pharmaceuticals this year included Gilenya, Tasigna and Ultibro.  They supply products in more than 180 countries to over 1 billion people.

2.Bayer

Revenue: $51.4 Billion­­

Bayer, which started with two men, kitchen stoves, and insatiable curiosity back in 1863, doubled their revenue last year, putting them at the number two on the list - up seven places from last year. Bayer had another great year in 2015. With improvements to health care and their portfolio, their position is only expected to improve. The company offers hundreds of household named products including Aleve, Afrin, and Claritin. This year, Bayer released five pharmaceuticals, Xarelto, Eylea, Stivarga, Xofigo and Adempas that contributed to their success. Their sales are growing, customer feedback is improving and company revenue continues to skyrocket.

1.Johnson & Johnson

Revenue:  $70 billion

Johnson & Johnson stands head and shoulders above the competition in regards to revenue, giving them the top spot on our list, this year and last. This year, Johnson & Johnson released Darzalex, the first drug used to fight multiple myeloma. The company’s highest grossing pharmaceuticals in 2015 include Remicade and Simponi. It comprises of some of the world’s largest consumer health, medical device, biologics and pharmaceutical companies. This organisation produces everything from baby shampoo to band-aids, making them a household staple. Johnson & Johnson has taken its place at the top and shows no signs of slowing down.

Posted by Arjun Datta

Business costs and revenue

Business costs

All business activity involves some kind of cost. Managers need to think about the because:

• Whether costs are lower than revenues or not. Whether a business will make a profit or not.
• To compare costs at different locations.
• To help set prices.

There are two main types of costs, fixed and variable costs. Here are some types of costs:

• Fixed costs = stay the same regardless of the amount of output. They are there regardless of whether a business has made a profit or not. Also known as overheads.
• Variable costs = varies with the amount of goods produced. They can be classified as direct costs (directly related to a product).
• Total costs = fixed + variable costs

Break-even charts, comparing costs with revenue
Drawing a break-even chart

Uses of break-even charts

There are other benefits from the break-even chart other than identifying the breakeven point and the maximum profit. However, they are not all reliable so there are some disadvantages as well:

Pros:

• The expected profit or loss can be calculated at any level of output.
• The impacts of business decisions can be seen by redrawing the graph.
• The breakeven chart show the safety margin which is the amount by which sales exceed the breakeven point.

Cons:

• The graph assumes that all goods produced are sold.
• Fixed costs will change if the scale of production is changed.
• Only focuses on the breakeven point. Completely ignores other aspects of production.
• Does not take into account discounts or increased wages, etc. and other things that vary with time.

Break-even point: the calcultion method.

It is possible to calculate the breakeven point withought having to draw the graph. We need two formulas to achieve this:

• Selling Price - Variable Costs = Contribution
• Break-even point = Total fixed costs/Contribution

Business costs: other definitions

There are other types of costs to be analysed that is split from fixed and variable costs:

• Direct costs: costs that are directly related to the production of a particular product.
• Marginal costs: how much costs will increase when a business decides to produce one more unit.
• Indirect costs: costs not directly related to the product. They are often termed overheads.
• Average cost per unit: total cost of production/total output

Economies and Diseconomies of scale:

Economies of scale are factors that lead to a reduction in average costs that are obtained by growth of a business. There are five economies of scale:

• Purchasing economies: Larger capital means you get discounts when buying bulk.
• Marketing: More money for advertising and own transportation, cutting costs.
• Financial: Easier to borrow money from banks with lower interest rates.
• Managerial: Larger businesses can now afford specialist managers in all departments, increasing efficiency.
• Technical: They can now buy specialised and latest equipment to cut overall production costs.

However, there are diseconomies of scale which increases average costs when a business grows:

• Poor communication: It is more difficult to communicate in larger firms since there are so many people a message has to pass through. The managers might loose contact to customers and make wrong decisions.
• Low morale: People work in large businesses with thousands of workers do not get much attention. They feel they are not needed this decreases morale and in turn efficiency.
• Slower decision making: More people have to agree with a decision and communication difficulties also make decision making slower as well.

Budgets and forecasts: looking ahead

Business also needs to think ahead about the problems and opportunities that may arise in the future. There are things to try to forecast such as:

• sales or consumer demands.
• exchange rates appreciation or depreciation.
• wage increases.

There are some forecasting methods:

• Past sales could be used to calculate the trend, which could then be extended into the future.
• Create a line of best fit for past sales and extend it for the future.
• Panel consensus: asking a panel of experts for their opinion on what is going to happen in the future.
• Market research.

Budgets

"Budgets are plans for the future containing numerical and financial targets". Better managers will create many budgets for costs, planned revenue and profit and combine them into one single plan called the master budget.

Here are the advantages of budgets:

• They set objectives for managers and workers to work towards, increasing their motivation.
• They can be used to see how well a business is doing by comparing the budget with the result in the process of variance analysis. Thevariance is the difference between the budget and the result.
• If workers get a say in choosing the objectives for a budget, the objectives would be more realistic since they are the ones that are going to do it and it also gives them better motivation.
• Helps control the business and its allocation of resources/money.

All in all, budgeting in useful for:

• reviewing past activities.
• controlling current business activity - following objectives.
• planning for the future.

First pic and video from https://www.ezyeducation.co.uk/

Sensitivity Analysis

You often have to forecast business results or analyze investment proposals by making assumptions on a number of parameters. The key assumptions may relate to revenue (price, volume, mix), costs (fixed vs. variable, material vs. labor, etc.) or other variables (capital invested, etc.). A presentation on such a business outlook should always include a sensitivity analysis and a discussion of potential scenarios. The way I suggest to do this:

(1) Identify the key metric used to evaluate the business or the investment proposal (in the example below: Return on Sales).

(2) Show on one slide which assumptions potentially have the biggest impact on this metric.




(3) Take the two or three most critical variables, and calculate how the key business metric would look like of you change the base assumption to an optimistic scenario vs. a pessimistic scenario.

If you do this only for two key variable, it’s quite easy to show it graphically – a simple 3×3 matrix (or you can even do a 5×5 matrix with more gradual scenarios). If you do it for three key variables, you will have to work witha tree structure and multiple matrices – as shown above. You can also highlight in color which scenarios fulfull a certain threshhold. For example, if your company has a minimum requirement of a 5% Return on Sale, all boxes where the ROS is below 5% could be colored in red.

The 50 most powerful companies in America

• Tanza Loudenback and Emmie Martin
• 
  

Power comes in many forms, but it boils down to having influence: over people, resources, and the global conversation.

Major corporations often wield more power than individuals, so we decided to break down which ones command the most. 

To determine how powerful each company is, we factored together fiscal 2014 revenue, number of employees, press mentions on Google News over the past year, and social media influence, as ranked on a scale of 1 to 100 by Klout, a site that analyzes social-media influence of companies and individuals across all platforms.

You can read our full methodology here.

Walmart, with its army of workers and massive sales, ranks as the most powerful company in America. It's followed by competitor Target (No. 2) and General Electric (No. 3).

Scroll down to see the full list.

50. Prudential

Chris Hondros/Getty Images

2014 revenue: $54.1 billion

Number of employees: 48,000

More than just providing life insurance, Newark, New Jersey-based Prudential helps clients save for retirement and manage their money at every stage of life. Fortune predicts that good things are ahead for the insurance company, noting that "the aging of the wealthy world will increase demand for insurance products."

Despite its 63,000 Twitter followers and 338,706 likes on Facebook, no Klout score is available for Prudential.

49. Procter and Gamble

AP

2014 revenue: $83 billion

Number of employees: 118,000

P&G dropped nearly 100 of its brands in 2014 to streamline the company and focus on its biggest profit-makers.

According to Fortune, which ranks the Cincinnati-based company as the 17th most admired company in the world, P&G is the global leader in consumer goods with an unparalleled production scale and international reach.

With a slimmer brand portfolio, P&G reported 5% lower sales in fiscal 2015. The company isn't engaging on social media, earning it a low Klout score of 68 out of 100.

48. Uber

Thomson Reuters

2014 revenue: N/A

Number of employees: ~2,000

Uber is changing the way we think about transportation, and despite numerous controversies and setbacks, it continues to grow.

Even though Uber doesn't release revenue data, the Silicon Valley-based ride-hailing service raised close to $1 billion in July, valuing it at $50 billion. Not to mention, it has a Klout score of 85.

Plus, with phrases like "it's the Uber of [insert activity here]" permeating our vernacular, it's impossible to deny the company's influence.

47. Yahoo

Daniel Zuchnik/Getty Images

2014 revenue: $4.98 billion

Number of employees: 12,500

California-based Yahoo generated more than $1 billion in new revenue in 2014 through its mobile, video, native, and social channels (aka Mavens). Yahoo now reaches 575 million mobile users, one of the largest mobile audiences globally.

Furthering its scope, Yahoo entered a partnership with Mozilla in late 2014 to use Yahoo.com as the default browser for Firefox in the US. According to analytics site Alexa.com, Yahoo is the fifth most popular site in the world, and has a Klout score of 98 — unsurprising for an internet giant.

46. Time Warner

Flickr/Consumerist Dot Com

2014 revenue: $27.4 billion

Number of employees: 25,600

Time Warner, which operates out of New York City, controls a significant portion of the media and entertainment industry, withseveral major television networks, including HBO, CNN, and TNT, under its command. It's also the second-largest cable provider in the US, operating in 29 states.

As far as social media influence, Time Warner lags behind other big companies, clocking in with a 73 Klout score.

45. Cisco Systems

Photo by Jerod Harris/Getty Images for Kairos Society

2014 revenue: $47.1 billion

Number of employees: 74,042

After a difficult fiscal 2014, Cisco Systems isexpected to come back strong with a new CEO at the helm who's already fixing some costly mistakes. The worldwide leader in IT is expected to continue growing its emerging cloud services and security business.

The Silicon Valley company has a Klout score of 92, expectedly high considering much of the world's internet traffic runs through Cisco Systems.

44. Lockheed Martin

AP

2014 revenue: $45.6 billion

Number of employees: 112,000

Security and aerospace company Lockheed Martin builds everything from military aircraft and radar to cybersecurity systems and missiles.

In short, the Owego, New York-based company supplies our defenses and keeps them strong. And since it doesn't look like the military is going defunct anytime soon, the defense industry will remain in high supply.

The company also has a respectable Klout score of 89, with 200,000 Twitter followers to boot.

43. JPMorgan Chase

Thomson Reuters

2014 revenue: $94.2 billion

Number of employees: 240,000

The nation's largest bank announced that it will close 300 bank branches by 2017 as more customers rely on mobile and online banking. The closures are part of a $1.4 billion cost-cutting plan put in place earlier this year by the Midtown Manhattan-based finance giant.

With the lowest social media influence among the Big Four banks, JPMorgan Chase has a Klout score of 68 out of 100, although the bank does command over 171,000 followers on Twitter.

42. CVS Health

Getty Images / Justin Sullivan

2014 revenue: $139.38 billion

Number of employees: 200,000

More people than ever pick CVS as their go-to spot for filling prescriptions, making it thebiggest retailer of prescription drugs in the US.

And that number is only growing — CVS, located in Rhode Island, will purchase Target's pharmacy and clinics businesses for about $1.9 billion, adding almost 2,000 pharmacies to its fleet. CVS's focus on health also opens it up to partnerships with other powerful companies, including a new plan to work with IBM's supercomputer Watson to find solutions for customers with chronic health issues.

Social media isn't CVS's strong suit, however. It has a low Klout score of 64, and only a little over a million fans on Facebook — small potatoes compared to corporations that pull in tens of millions of Facebook likes.

41. eBay

Wikicommons

2014 revenue: $17.9 billion

Number of employees: 34,600

In 2014, the California-based e-commerce giant announced it would be splitting eBay and PayPal into two companies. EBay still runs Skype and StubHub, but PayPal has been its principal source of growth since the company was bought by eBay in 2002.

Still, eBay, now in its 20th year of operation, has a huge command over online shoppers spanning 203 markets worldwide. It's powerful online, as well: The company has a Klout score of 94.

40. Goldman Sachs

REUTERS/Lucas Jackson

2014 revenue: $34.53 billion

Number of employees: 34,000

On Wall Street, few names inspire as much respect as Goldman Sachs. And the investment banking firm is on the rise — itgrew profits 5% last year and recently garnered attention for backing Symphony, a secure internal chat system that has beencalled a "Bloomberg killer."

Goldman also proves its social media influence with over 400,000 followers on Twitter and more than 30,000 likes on Facebook, earning the New York-based bank a Klout score of 89.

39. Facebook

Glassdoor

2014 revenue: $12.7 billion

Number of employees: 10,955

The pioneer of social media is now the top social commerce platform, driving more than two-thirds of mobile e-commerce traffic. Thanks to ads on the site, revenue was up 58% in 2014 for the Silicon Valley company.

This summer, Facebook’s market value topped $250 billion, making it the fastest company to reach that high so quickly.

Ultimately, Facebook has incredible influence. In August, CEO Mark Zuckerberg announced that 1 in 7 people on Earth used Facebook in a single day. Unsurprisingly, the social media giant has a high Klout score of 98.

38. Chevron

Facebook/Chevron

2014 revenue: $200.5 billion

Number of employees: 61,546

The second-largest oil company in the US, Chevron continued to grow its reach last year, with successful explorations in Australia, the Gulf of Mexico, and Canada.

But despite slipping oil prices and revenue loss, Chevron hasn't lost its footing yet, and is cutting spending through 2017 so it can dive headfirst into growth. The San Ramon, California-based company has a modest influence online, earning a mid-range Klout score of 87.

37. Morgan Stanley

REUTERS/Carlos Barria

2014 revenue: $34.3 billion

Number of employees: 55,795

Morgan Stanley's strong investment relationships with tech companies has given it a foothold in Silicon Valley. In fact, the Manhattan-based bank has worked with Netflix since 2011.

Morgan Stanley "helped write the financial script" for the streaming service, offering notes totaling nearly $2 billion between 2014 and 2015.

When it comes to social media influence, Morgan Stanley lands in the middle of the road with a Klout score of 87.

36. Costco

Kevork Djansezian/Getty Images

2014 revenue: $110.2 billion

Number of employees: 195,000

Wholesale-discount-superstore Costcoconsistently outperforms competitors Walmart and Target due to its concentration on driving sales.

While other stores split their focus between marketing, sales, and more, Costco keeps its eye on the prize — to the tune of more than $100 billion in revenue last year.

And more than just home goods and food, Costco is also a growing force in car sales, likely due to its fixed prices.

But despite its over 1.2 million Facebook fans, no Klout score is available for the Issaquah, Washington-based company.

35. Starbucks

Luis Galdamez/Reuters

2014 revenue: $16.4 billion

Number of employees: 191,000

Starbucks, the fifth most admired brand in the world, according to Fortune, is more pervasive than ever. With 22,000 retail stores in 66 countries, the Seattle-based coffee retailer spent most of 2014 dedicated to going green and launching plans to send its employees to college and hire more ofAmerica's military families and veterans.

Some of its stores are also rolling out beer, wine, and gourmet food options. Starbucks has a Klout score of 84 and nearly 10 million followers on Twitter.

34. United Technologies

Thomson Reuters

2014 revenue: $65.1 billion

Number of employees: 211,000

You might not immediately recognize the name United Technologies, but the Hartford, Connecticut-based corporation is responsible for building several things you use daily, including Otis elevators and Carrier air conditioning.

The company also manufactures planes and helicopters, and was named one of the most respected companies in the world by Barron's.

But it isn't as social-media-forward as some of our other list contenders, with a Klout score of 59. Considering that the brand only has about 20,000 followers on Twitter, however, this is expected.

33. Bank of America

Getty Images / Justin Sullivan

2014 revenue: $85.1 billion

Number of employees: 220,000

One of America's Big Four banks, Charlotte, North Carolina-based Bank of America has carved out its place not only in commercial banking, but in wealth management.

In 2008, Bank of America merged with Merrill Lynch, forming the world's largest wealth-management company by assets. Bank of America launched its Preferred Rewards program in 2014 in an aim to improve customer satisfaction.

The bank has a Klout score of 90, higher than any of its competitors.

32. Nike

Mike Lawrie/Nike

2014 revenue: $27.7 billion

Number of employees: 56,500

Athletic gear is becoming a mainstream clothing staple — whether you actually work out or not — and no one does it better than Nike. The apparel company, headquartered in Beaverton, Oregon, is predicted to outperform the industry for the next five years, Business Insider reported earlier this year.

Nike's also popular with millennials and scores a 92 on Klout, proving its social media know-how. The brand boasts over 5 million Twitter followers and more than 22 million Facebook fans.

31. Anthem

Thomson Reuters

2014 revenue: $73.9 billion

Number of employees: 51,500

Formerly known as WellPoint Inc., the company changed its corporate name to Anthem last year.

Despite a late 2014 data breach, the largest for-profit health insurance company in the nation has continued to grow, evenpurchasing Cigna in a $54 billion deal, in a wave of consolidation in the healthcare industry.

The deal will make Anthem, which operates out of Indianapolis, Indiana, the nation's largest health insurer by enrollment as early as next year. A Klout score is unavailable for Anthem.

30. Citigroup

REUTERS/Brendan McDermid

2014 revenue: $76.9 billion

Number of employees: 237,000

Citigroup, best known for its consumer banking services, continues to grow its physical and digital presences.

In fact, the New York City-based bank reported a 50% increase in mobile users last year, and reaches worldwide with banksacross the globe in North America, Asia, Latin America, the Middle East, and Africa.

Citigroup's not quite as prominent on social media as some of our other companies, but it still holds strong with a 79 on Klout.

29. FedEx

Justin Sullivan/Getty Images

2014 revenue: $45.6 billion

Number of employees: 246,000

Along with a rise in e-commerce comes a rise in demand for delivery services. This year,FedEx spent nearly $10 billion to purchase 50 Boeing airliners to accommodate its freight delivery expansion in Europe.

Despite FedEx's low Klout score of 72, the Memphis-based mailer appears at No. 12 on Fortune’s most admired companies list.

28. American Express

Angela Pham/BFAnyc.com

2014 revenue: $34.3 billion

Number of employees: 53,500

Between slowing sales and the expiration of its exclusive deal with Costco, it was a tough year for American Express. But the credit-card company still remains profitable, proving that powerful companies can take a hit and still bounce back.

On the social media front, New York City-based Amex still commands a strong presence with over 5 million Facebook fans, 841,000 Twitter followers, and a Klout score of 89.

27. Kroger

Associated Press

2014 revenue: $108.56 billion

Number of employees: 400,000

Kroger is the largest supermarket chain by revenue in America. It also operates under nearly two dozen banners, including jewelry stores and convenience stores.

While the Cincinnati-based retailer has low social-media influence with a Klout score of 80, Kroger is beloved around the country for its top-notch customer service and loyalty program.

Now that Kroger is offering natural and organic food options, it's set to surpass its high-end rivals.

26. Exxon Mobil

Thomson Reuters

2014 revenue: $411.9 billion

Number of employees: 75,300

Even with the steady downturn in the price of oil recently, Irving, Texas-based Exxon remains a major player in the industry, pulling in a whopping $400 billion in revenue last year alone. Despite recent controversies including acid leaks andcontamination from industrial sites, Exxon undoubtedly has the money and influence to power through.

The company is fairly compelling on social media as well, earning a Klout score of 87, despite commanding fewer than 200,000 followers.

25. Wells Fargo

RyanWalshPhotography via Flickr

2014 revenue: $84.34 billion

Number of employees: 265,800

The largest bank in America by market capitalization was also named the most valuable bank brand in the world three years in a row by Brand Finance.

Wells Fargo, unlike its competitors, has focused on traditional lending rather than investments, which has led to more rising profits since the financial crisis. Big investors have taken notice of the San Francisco-based bank — as of May 2015, Warren Buffett's Berkshire Hathaway owned 470 million shares of Wells Fargo.

It's also somewhat influential online with a Klout score of 88, commanding 172,000 Twitter followers and over 800,000 Facebook likes.

24. Coca-Cola

Jonathan Leibson/Getty Images

2014 revenue: $45.99 billion

Number of employees: 129,200

Chances are, you've consumed at least one of the 657 billion Coca-Cola products purchased annually. The beverage company, based in Atlanta, Georgia, is impossible to ignore. Whether you're at the grocery store or the movies or grabbing concessions during halftime, Coke — or Sprite, or Fanta— is on tap.

The brand is savvy on social media as well, commanding 375,000 Twitter followers, 782,000 Facebook likes, and a Klout score of 92.

23. Oracle

Oracle/Glassdoor

2014 revenue: $38.23 billion

Number of employees: 132,000

Last year, Oracle impressively surpassed IBM to become the world's second-largest software vendor by sales. As the premier cloud provider, Oracle serves 400,000 clients, including every Fortune 100 company.

Oracle is determined to simplify IT and lead industry innovation. The California-based company shows some influence on social media with a Klout score of 87.

22. Hewlett-Packard

Business Insider

2014 revenue: $111.5 billion

Number of employees: 302,000

Hewlett-Packard isn't looking great after announcing that it will cut another 25,000 to 30,000 jobs, part of a huge multiyear layoff plan.

But being powerful isn't always about being well-liked, and the Palo Alto-based company remains a dominant corporation, especially considering that press mentions — both positive and negative — factored into our rankings. The company also rakes in a huge amount of revenue: over $100 billion last year alone.

HP fares much better in terms of social media, however, with almost a million followers on Twitter and a Klout score of 92.

21. Boeing

Photo by David Ryder/Getty Images

2014 revenue: $90.8 billion

Number of employees: 165,500

The Chicago-based jet maker is the world's largest with 723 planes delivered in 2014. Roughly 48% of the world's commercial fleet is Boeing and 90% of the world's cargo is carried on Boeing freights.

What's more, the company produces the family of aircraft used by the US defense and security teams. Boeing is also exploring drones and laser cannons and working on churning out more Dreamliner planes, the most fuel-efficient jetliner to date.

The airline manufacturer doesn't pull much influence online, however, as it has a low Klout score of 70.

20. Berkshire Hathaway

REUTERS/Rick Wilking

2014 revenue: $194 billion

Number of employees: 316,000

Berkshire Hathaway, a holding company in Omaha, Nebraska, helmed by the distinguished Warren Buffett, not only rakes in billions in revenue, but owns several other prominent companies, including Geico, Heinz, and Helzberg Diamonds. Buffett himself is also the world's third richest man, commanding a personal fortune over $70 billion.

Though Berkshire Hathaway doesn't have an official Klout score, Buffett himself commands an 86 from the platform, despite only tweeting seven times so far.

19. Comcast

Joe Raedle/Getty Images

2014 revenue: $68.78 billion

Number of employees: 139,000

The largest broadcasting and cable company in the world by revenue, Philadelphia, Pennsylvania-based Comcast owns Comcast Cable (under Xfinity) and NBCUniversal. Under both brands, the company operates Universal Pictures, Universal Parks and Resorts, a host of popular television channels including E! and Bravo, and Hulu, one of the top movie and TV streaming apps.

Comcast was set to merge with Time Warner earlier this year, but the deal was cut short in April. Meanwhile, NBCUniversal has been investing heavily in new media brands Vox Media and BuzzFeed. Comcast has a Klout score of 90.

18. Ford Motor Company

Thomson Reuters

2014 revenue: $135.8 billion

Number of employees: 187,000

Sales were down for Ford last year, but it's not a sign of defeat. Fortune notes that the Dearborn, Michigan-based automaker intentionally — and strategically — took a "rebuilding" year to refocus before pushing back full force.

It worked: The company saw profits jump a whopping 44% in the second quarter, far surpassing predictions.

Ford also engages with customers on social media platforms like Facebook and Twitter, and has an impressive Klout score of 94.

17. Intel

Joe Raedle/Getty Images

2014 revenue: $55.25 billion

Number of employees: 106,700

Intel, headquartered in Santa Clara, California, is the world’s leading semiconductor chipmaker with a market cap of $140 billion. Apple has been using Intel chips for its computers since Steve Jobs announced the switch from IBM in 2005.

Last year, Intel lost billions of dollars going after its flailing mobile phone business, but now it's probable that Apple will replenish Intel’s losses by allowing it to capture half of its modem business with this year's iPhone release.

Intel's undoubtedly doing well on social media, though, and commands a high Klout score of 96. It has 4.26 million Twitter followers and over 25 million fans on Facebook.

16. Disney

Jesse Grant/Getty

2014 revenue: $48.8 billion

Number of employees: 180,000

The Disney name is everywhere: toys, movies, television, apparel, and even theme parks. Its last major movie release, "Inside Out," brought in $7.4 billion worldwide at the box office, and the much-anticipated "Star Wars" sequel debuts in December.

With 4.53 million Twitter followers and over 50 million Facebook likes, the Burbank, California-based company's Klout score sits at a solid 83.

15. McDonald's

Reuters

2014 revenue: $27.4 billion

Number of employees: 420,000

With consumer trends moving toward fast-casual and away from fast food, Oak Brook, Illinois-based McDonald's is doing all it can to stay relevant. The company's turnaround plan includes rolling out all-day breakfastand revamping some of its stores to launch the "create your own" gourmet burgeroption.

McDonald's lists eight countries, including China and Russia, as high-growth markets — aka locations with high expansion and franchising potential, which is important since a large majority of McDonald's restaurants (about 80% by the end of 2014) operate as franchises.

And with nearly 3 million followers on Twitter, the fast-food giant earns a Klout score of 93.

14. Verizon

Thomson Reuters

2014 revenue: $127.1 billion

Number of employees: 178,500

In a $4.4 billion deal announced in May,Verizon acquired AOL, also taking on its subsidiary brands The Huffington Post and TechCrunch. The largest telecommunications company in the US, Verizon, headquartered in New York City, continues to innovate and is currently building an even faster wireless network — supposedly fast enough to download a movie in 15 seconds.

Verizon's 1.6 million Twitter followers and more than 7 million likes on Facebook gives it a definite presence online, bringing its Klout score to 86.

13. PepsiCo

Safari Sundays

2014 revenue: $66.7 billion

Number of employees: 271,000

Despite a major slump in soda sales, America's leading beverage producer found ways to remain profitable. PepsiCo, which operates out of Purchase, New York, owns 22 of the most well-known food and drink brands in the world, including Gatorade, Frito-Lay, and Tropicana, which all earned more than $1 billion in sales in 2014.

With a Klout score of 89, PepsiCo came up just behind its competitor, Coca-Cola, in terms of social-media influence.

12. Johnson and Johnson

AP

2014 revenue: $74.33 billion

Number of employees: 126,500

Though Johnson and Johnson, a healthcare company that manufactures medical devices and consumer products, saw a slump in sales earlier this year, it's on its way back up.

Barron's reports that the New Jersey-based company is "positioned for solid growth," and Business Insider noted that despite the lower sales, it beat expectations on the top and bottom lines in the second quarter.

Despite having over 55,000 Twitter followers, the company’s Klout score is unavailable.

11. Google

Paul Sakuma/AP

2014 revenue: $66 billion

Number of employees: 53,600

The search giant will soon become the largest subsidiary of Alphabet Inc., a holding company Google executives announced this summer. The Silicon Valley company is consistently ranked one of the best companies to work for in America, with a startup culture that's envied by many.

Google also owns YouTube, the world's largest video-sharing website. Google's Klout score is 98, unsurprisingly high for one of the world's most innovative and engaging companies.

10. IBM

Thomson Reuters

2014 revenue: $92.8 billion

Number of employees: 379,592

Though IBM struggled to remain relevant against falling profits last year, the technology and consulting company retains a strong base of loyal customers and powerful partners, including major corporations such as Apple and Citigroup.

IBM is also getting into the Internet of Things — a smart move, considering it'sexpected to become a $1.7 trillion marketwithin the next five years, which would only increase the Armonk, New York-based company's already-high revenue.

IBM falls behind on social media, though, with no Klout score available.

9. General Motors

REUTERS/Rick Wilking

2014 revenue: $155.9 billion

Number of employees: 212,000

GM, one of the world's largest automakers, has been in business for over a century. Despite a year filled with legal battles thatrecently ended with a multimillion-dollar settlement deal, GM has increased sales on the popular Chevrolet, Buick, GMC, and Cadillac brands.

The Detroit-based motor company has 21,000 dealers spanning six continents and a Klout score of 91, putting it just behind its competitor, Ford Motor Company, in terms of social-media influence.

8. UPS

Photo by Scott Olson/Getty Images

2014 revenue: $58.2 billion

Number of employees: 237,300

The world's largest package-delivery service, headquartered in Atlanta, Georgia, delivered 4.8 billion packages and documents in more than 220 countries and territories in 2014. After a rough holiday season in 2013,missing millions of promised delivery times, UPS bounced back by hiring more seasonal workers and opening new shipment centers.

With a Klout score of 80, UPS has a low social media influence, but still more than its direct competitor, FedEx, which clocks in at only 72 on Klout.

7. Apple

REUTERS/Adrees Latif

2014 revenue: $182.9 billion

Number of employees: 92,600

Easily one of most recognizable names in tech, Cupertino, California-based Apple continues to blow us away with new innovations. The big release of the year was the Apple Watch, but the company also announced more new features on the way, including additional Apple Watch styles as well as iPad and iPhone upgrades.

We used the Klout score for Apple Music in our ranking, a seemingly low 84 out of 100. But it's important to note that Apple's lack of a true score stems from the fact the the tech giantdoesn't have a central Twitter account.

But Apple Music commands 7.73 million Twitter followers and the App Store has 4.09 million — certainly nothing to sneeze at.

6. AT&T

Mike Mozart/flickr

2014 revenue: $131.6 billion

Number of employees: 250,730

The Dallas, Texas-based mobile phone service provider is now also the largest pay-TV provider in the US thanks to a recent$48.5 billion merger with DirecTV. AT&T's 4G LTE network covers more than 300 million people.

AT&T has a Klout score of 91 — thanks to 691,000 Twitter followers and 5.7 million Facebook likes — and is the only telecommunications company to rank onFortune’s most admired companies list.

5. Microsoft

Thomson Reuters

2014 revenue: $86.83 billion

Number of employees: 118,000

Microsoft is on the upswing. Revenues are up 11% from last year, with tablet sales continuing to grow. In fact, the Surface brought in over $1 billion in sales in the fourth quarter last year, making it "respectably profitable," Business Insider reported.

It's no surprise that the Redmond, Washington-based technology company is also social media savvy, earning it a near-perfect Klout score of 99, tied with Amazon for the highest score on our list.

4. Amazon

REUTERS/Phil Noble

2014 revenue: $88.99 billion

Number of employees: 154,100

As the largest e-commerce site in the country, Amazon recently surpassedWalmart as the most valuable retailer in America in terms of market capitalization.

The Seattle-based company currently owns over 40 subsidiaries, including Zappos, IMDb, and GoodReads, and refuses to be left behind in the consumer-electronics market.

Amazon debuted an e-reader and tablet to compete with Apple and launched Amazon Instant Video, which has produced an award-winning original television series. Amazon is tied with Microsoft for the highest Klout score on our list at 99 out of 100.

3. General Electric

Mike Simons / Getty Images

2014 revenue: $72.61 billion

Number of employees: 347,000

With more than 16 divisions and hundreds of thousands of employees worldwide, General Electric has its hand in almost every aspect of daily life.

From the electricity that powers our homes to the appliances that cook our food to the engines that power our airplanes, the Fairfield, Connecticut-based company is constantly innovating.

The corporation also has a Klout score of 91, proving its prowess online as well.

2. Target

Andrew Burton/Getty Images

2014 revenue: $72.61 billion

Number of employees: 347,000

Target has a Klout score of 90 and has been turning to its millions of social media followers to gauge customer satisfaction.

In response to a social-media storm, Minneapolis, Minnesota-based Target pleased many loyal customers when itannounced this summer that it would begin to phase out gender-specific signage from its stores.

The retailer hasn't been quiet about itssupport for equal rights and gay marriage, either. To date, Target has also given $1 billion to education through fundraising and global initiatives.

1. Walmart

REUTERS/Rick Wilking

2014 revenue: $485.62 billion

Number of employees: 2.2 million

With 11,500 stores in 28 countries, Walmart's scope is undeniable. The family-owned, Arkansas-based retailer has a Klout score of 90 and is one of the world's most valuable retail brands behind online giants Alibaba and Amazon.

Walmart is also the single-largest employer in America and announced earlier this yearit's raising wages for 500,000 of its 1.4 million US workers. The company sits at No. 1 on the Fortune 500.