It did not simply rely on the total number of weapons a country had, but considered weapon diversity to provide a better balance.
According to Global Firepower, key considerations taken for the final rankings included geographical factors, natural resources, logistical flexibility and local industry.
The United States of America was ranked as the most powerful military nation, followed by Russia, China, India, France and the United Kingdom.
Australia is 23rd, just behind Canada on 22 and ahead of Saudi Arabia, North Korea and Algeria.
The country with the weakest military according to the ranking is the Central African Republic.
http://www.globalfirepower.com/countries-listing.asp
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GLOBAL FIREPOWER MILITARY RANKS 2016
1. United States of America
2. Russia
3. China
4. India
5. France
6. United Kingdom
7. Japan
8. Turkey
9. Germany
10. Italy
11. South Korea
22. Canada
23. Australia
98. Nepal
101. New Zealand
124. Namibia
126. Central African Republic
(source: http://www.globalfirepower.com/countries-listing.asp)