The listing also ranks the most profitable companies by economic sector and the biggest professional services firms by which SA Giants and Top Performers they consult to.
Top Companies is one of few ranking publications that operate completely independently from advertisers or other influences. The research is undertaken by McGregor BFA and I-Net Bridge. The editorial comment was produced by the FM's team of investment journalists.
The 2005 edition is the 39th since it was first published in 1967. Over the years many changes have been made, including the introduction of the 20 Top Companies awards winners three years ago. The award winners are those that receive the stamp declaring them to be true blue-chips. As a group, the Top Companies award winners have consistently outperformed the rest of the market.
However, the make up of the Top 20 has changed after a year of pain for rand-exposed companies, particularly mining businesses.
The winners are chosen on a balance of quantitative historic financial data and the qualitative views of the FM's investment team. The historic data goes back as far as five years, and uses a formula made up of different measurements. The FM's team also examine the companies through a set of different criteria including the future prospects of the company. A weighted score giving the FM's view 60% of the weighting is then used to determine the top 20. Top Companies gives further details.
