Microsoft breaks into global top 10, beating IBM

Microsoft is bigger than IBM. So, for that matter, is Intel. Both companies may lag behind Big Blue in terms of turnover, but when it comes to stock market value they are streets ahead.

That's shown by the list of The Global 1,000, Business Week's annual snapshot of the companies with the highest market capitalisation.

For the first time, Microsoft and Intel have jumped into the top 10, with Microsoft in fifth place, behind Coca-Cola and General Electric, but ahead of Exxon and all the car giants.

Microsoft's market value (number of shares by share price) of $148.59bn (#90bn) seems ridiculously high when compared to its annual turnover of $8.7bn, but this is an indicator of its shareholders' confidence in a company that holds a de facto monopoly in desktop software.

Intel benefited as well, reaching seventh place. IBM, with a turnover tenfold that of Microsoft's, could only make 13th place.

Other hi-tech high-flyers were Hewlett-Packard in 35th place and Compaq Computer which jumped from 223rd place last year to 83rd.

The fastest-growing stock in the top 1,000 was Dell Computer, which reached 177th place with growth of 360%. Compuware, Advanced Micro Devices and Compaq all made the top 10 fastest-selling list as well.

According to Business Week, Dell's custom-built policy helps growth. By holding few raw materials, no finished goods and by collecting payment quickly Dell can convert a sale to cash on its balance sheet in less than a day.

But there was bad news for the UK. Of the UK firms that made it into the top 1,000, not one - with the possible exception of BT in 45th place - is a hi-tech company.