Overall revenues for the largest Hispanic companies went up last year, but the recession still inflicted damage. The top 100 companies on the list accounted for 69 percent of the revenue growth, making it a decidedly slow-growth period for companies lower down on the list. The latter qualify as middle-market companies, between $5 and $50 million in size. Nine companies fell off the directory by going out of business, another 13 had revenues that fell below the $5.1 million minimum, and 20 more declined to provide financial data, most citing decreased revenues as the reason.
Companies that survived on the list saw their profit margins shrink. The number of Hispanic Business 500 firms reporting losses nearly tripled last year (see graph, “Profit Ranges”). An analysis of the 187 companies that appeared on the list for both years reveals that 36 moved down in profit margin category, 27 moved up, and 123 stayed the same. In general, corporate profits in the United States fell 12.5 percent in 2001, according to data from the Bureau of Economic Analysis.
Now, however, Hispanic companies look poised for another burst of growth. On the technology front, more Hispanic Business 500 companies have Web sites than ever before. Since 1999, the number of firms with Web sites has more than doubled; currently 415, or 83 percent, of the companies maintain an Internet presence (see chart).
More than half (57.2 percent) of CEOs said they plan to add people to their payroll this year. Last year, cumulative payroll for the Hispanic Business 500 jumped nearly 5 percent. When asked about the main barrier to revenue growth, 46 percent of CEOs – nearly double the percentage of the previous year – cited market conditions. Presumably, as market conditions improve in 2002, so will the fortunes of the Hispanic Business 500.
Introduction written by Senior Editor Joel Russell. Hispanic Business 500 directory research by Chief Economist Frank Chow, Research Supervisor J. Tabin Cosio, and Research Assistants Cynthia Marquez and Michael Caplinger.
Methodology of the Hispanic Business 500 Directory
Hispanic Business research staff gathered data for the 18th annual listing of the 500 largest Hispanic-owned companies in the United States from the Hispanic Business Company Profile form, which appeared in the magazine’s December 2001 issue. Also, Company Profile forms were mailed to more than 14,000 Hispanic-owned companies in the United States.
Companies included in the Hispanic Business 500® must show at least 51 percent ownership by Hispanic U.S. citizens and must have headquarters in one of the 50 states or Washington, D.C. Companies must submit revenue figures based on their report to the IRS on line 1c of the corporate/partnership tax return. The revenue figure must be submitted on a signed form verified by the CEO, CFO, or a CPA representing the company. Nonprofit organizations, advertising and public relations agencies, and companies based in Puerto Rico are not eligible.
While Hispanic Business makes every attempt to locate and include the largest Hispanic-owned companies in the country, we cannot list companies that do not submit the required information by our deadline.
To ensure that your company is considered for future Hispanic Business directories, please send your name, company name, mailing address, phone number, fax number, and e-mail address to our Research Department via fax at (805) 964-6139 or via e-mail at firstname.lastname@example.org. Indicate that you would like to have a Company Profile form sent to you.
Most Popular Stories
- Social Media Campaign Increases Organ Donor Registrations
- Airport Garners Social Media Award
- What Will Happen When Quantitative Easing Ends?
- MillerCoors Taps New Hispanic Ad Agency
- Aetna Leaving California's Individual Health Insurance Market
- Immigration Reform Would Decrease U.S. Budget Deficit
- Calories Count: Starbucks to Post the Numbers on Menu Boards
- Honda Says Sorry About the Lack of Electric Fits
- Tea Party Wants to 'Audit the IRS'
- Patriots' Aaron Hernandez Questioned in Slaying