The most profitable large company in the United States is Linear Technology Corp., according to an earning rankings analysis by Bloomberg.
In ranking large U.S. companies by their earnings, Bloomberg used an analysis that gave equal weight to five variables, including return on invested capital and profit margin. By this criteria, Linear Tech beat out such heavyweights and Microsoft and Apple, two companies with market valuations between 30 and 50 times the size of Linear Tech.
According to industry analysts, Linear Tech, a chipmaker for the semiconductor industry, has succeeded by avoiding commodity consumer products and focusing on industrial electronics, with industrial customers accounting for approximately half of Linea’s total sales. Furthermore, nearly all (98 percent) of Linear’s products are proprietary, which means that customers are largely tied to purchasing from the chipmaker.
Linear Tech has yet to comment on the announcement.
