Greenland Holding Group, parent of main Atlantic Yards/Pacific Park developer, rises to #125 on Fortune Global 500. But profits slowed, and debts mount.

Fortune magazine on 8/3/22 released its annual Global 500 list, with Greenland Holding Group, parent of the main Atlantic Yards/Pacific Park developer Greenland USA, rising to #125 from #142.

That mostly steady ascent that nonetheless lags behind previously stated (in 2014) ambition to reach the top 100 by 2020.

The well-known Fortune Global 500 ranking relies solely on revenue in the past fiscal year.

The lesser-known Forbes Global 2000 bases its assessment on four broad metrics: a composite score assessing sales (revenue), profits, assets, and market value. (I'll have more on that tomorrow.)

Neither takes notice of Greenland's significant debts, which have caused its credit rating to plunge to Selective Default, as per S&P, before recovering slightly. And its stock price is down.

Looking at the numbers

Screenshots from Fortune

The company information shown at right obscures some significant differences between the report a year earlier.

For example, while revenues are up 27.8%, from $66.1 million in the 2021 report to $84.5 million in this years ranking, profits are down nearly 56%, from $2.2 billion to $958 million.

(See graphic below, as well.)

The overall market value, as of 7/19/22, is $6.7 billion, which is surely a decline, though the 2021 report didn't assess that figure.

The number of employees, which exceeded 86,000 in the 2021 ranking, is now just below 80,000, a sign that the company is trying to streamline expenses. 

In the fourth quarter of last year, Reuters reported 3/15/22, Greenland cut real estate-related positions by 30%.

Key financials: profit ratios decline

Looking at the profit ratios, in 2021, profit was 3.75% of revenues, while this year it's 1.1%. In 2021, profit was 1% of assets, while this year it's .4%. In 2021, profit was 16.7% of stockholder equity, while this year it's 6.8%.

Top 100 by 2025?

As shown in the screenshot below from Fortune, after a mid-decade hiccup, Greenland has been rising steadily in the magazine's rankings. 

Based on this growth pattern, Greenland might enter the top 100 by 2024 or 2025. But it looks like the company has a lot more gyrations in its future before then.