Unconventional Listing: Why Some Aussie Giants Miss the Global 2000
Which Australian businesses earned a spot in the Global 2000 list this current year?
Let's take a look at the unexpected entrants and surprising absentees in this year's Global 2000 roster.
Merger Madness: Sigma Healthcare's Scrape into the Global 2000
In a surprising turn of events, the merger of Sigma Healthcare with Chemist Warehouse catapulted the combined entity into the Global 2000 at position 1,955.
Viva Energy's Unexpected Ascendancy
Melbourne-based petrol station operator Viva Energy, despite a market cap of just US$1.7 billion and a US$50 million loss in the previous fiscal year, manages to secure a spot at No. 1,834. Its impressive US$20 billion in annual sales and US$7.5 billion in assets are the driving factors behind Viva Energy's unexpected presence on the Global 2000.
While the ASX ranks Viva Energy as the 102nd largest company, its market cap doesn't seem to meet the criteria for tech giants like WiseTech Global and REA Group. Viva Energy's significant sales and assets figures, however, ensure its inclusion in the Global 2000.
Aussie Absentees: The Missing Tech Titans
Despite their stellar market caps, tech giants WiseTech Global ($23.5 billion) and REA Group ($20.5 billion) are conspicuously absent from this year's Global 2000 list. Atlassian makes the cut, but under the United States banner due to its 2022 redomiciliation, even though its operational and founding roots remain firmly in Sydney.
What could be the reason for these tech titans' absentee status?
The Four Pillars of the Global 2000
The Global 2000's inclusion criteria revolve around four key metrics: sales, profits, assets, and market value. To qualify, a company must meet the threshold for at least one of these metrics. Forbes generates separate lists based on each metric, and a company must rank in at least one of these lists to secure a spot in the global ranking.
The Forbes Methodology:
- Sales: A company must have more than $5.9 billion in sales.
- Profits: A company must have over $423 million in profits.
- Assets: A company must have over $13.8 billion in assets.
- Market Value: A company must have over $6.3 billion in market value.
The Elusive Inclusion of WiseTech and REA Group
Even though WiseTech Global and REA Group boast impressive market caps, their performance in other areas, such as sales or profits, might not meet the required thresholds. This failure to qualify in at least one of the key metrics could be the reason for their absence from the Global 2000 list this year.
- The sales and assets of Viva Energy, a melbourne-based petrol station operator, surpass the thresholds set by the Global 2000, despite its relatively small market cap, allowing it to secure a spot in the ranking.
- The tech giants WiseTech Global and REA Group, with their substantial market caps, may not have met the required thresholds in sales or profits, hindering their inclusion in the Global 2000, as the ranking prioritizes these four key metrics: sales, profits, assets, and market value.
