Forbes annually releases the Global 2000 list, which ranks the top 2000 public companies in the world based on a variety of factors. The methodology used to determine these rankings is a comprehensive and rigorous process that involves analyzing each company’s revenue, profits, assets, and market value. This data is then standardized and weighted to create an overall score for each company, which is used to determine its ranking on the list.
The first step in the Global 2000 methodology is to gather financial data from each of the 2000 companies. This data includes revenue, profits, assets, and market value, as well as other financial metrics such as debt-to-equity ratio and return on equity. This information is collected from company filings, financial reports, and other sources, and is then standardized to ensure consistency across all companies.
Once the financial data has been collected and standardized, it is weighted based on a set of criteria that reflect each company’s overall financial health. These criteria include revenue, profits, assets, and market value, as well as other factors such as debt levels and profitability ratios. The weighting process is designed to give a more accurate representation of each company’s financial performance and to ensure that larger companies are not disproportionately ranked higher on the list.
After the data has been weighted, each company is assigned an overall score that reflects its financial health and performance. This score is used to determine the ranking of each company on the Global 2000 list. Companies with higher scores are ranked higher on the list, while those with lower scores are ranked lower. The ranking process is designed to provide an objective and comprehensive analysis of the top public companies in the world.
In addition to the overall ranking, the Global 2000 list also includes separate rankings for specific industries and regions. These rankings are based on the same methodology used for the overall list, but focus specifically on companies within a particular industry or region. This allows for a more detailed analysis of the top companies in each sector and location, and provides valuable insights into global economic trends.
Overall, the Global 2000 methodology is a thorough and rigorous process that involves collecting, standardizing, weighting, and ranking financial data for the top public companies in the world. This process ensures that the list is objective, comprehensive, and reflective of each company’s financial performance. By using this methodology, Forbes is able to provide valuable insights into the global economy and the top players in the corporate world.
