Tencent Holdings (HKSE:00700) ROCE %

: 16.92% (As of Sep. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Tencent Holdings's annualized ROCE % for the quarter that ended in Sep. 2023 was 16.92%.

Tencent Holdings ROCE % Historical Data

The historical data trend for Tencent Holdings's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 18.80 [6] => 21.62 [7] => 22.86 [8] => 17.83 [9] => 14.48 )

Tencent Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

18.80

21.62

22.86

17.83

14.48

Tencent Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																39.61	13.92	13.47	16.92	-

Tencent Holdings ROCE % Calculation

Tencent Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	189452.347	/	( ( (1762322.115 - 484881.997)	+	(1725158.372 - 385181.891) )	/ 2 )
	=	189452.347	/	( (1277440.118	+	1339976.481)	/ 2 )
	=	189452.347	/	1308708.2995
	=	14.48 %

Tencent Holdings's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	216999.812	/	( ( (1681690.87 - 381580.656)	+	(1653289.651 - 388688.527) )	/ 2 )
	=	216999.812	/	( ( 1300110.214	+	1264601.124 )	/ 2 )
	=	216999.812	/	1282355.669
	=	16.92 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2023) EBIT data.

Tencent Holdings (HKSE:00700) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Tencent Holdings ROCE % Related Terms

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Tencent Holdings (HKSE:00700) Business Description

Industry

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Traded in Other Exchanges

TCTZF:USA TCEHY:USA TCEHY:Mexico 0Z4S:UK NNN:Germany NNND:Austria

Address

No. 33 Haitian 2nd Road, Tencent Binhai Towers, Nanshan District, Shenzhen, CHN, 518054

Website

http://www.tencent.com

Tencent is arguably the most influential internet firm in China as one can hardly go by a day without using its products. Tencent is the world's largest video game vendor and owns the world's top-grossing mobile game--Honor of Kings. Tencent also runs China's largest social media super app--WeChat. The app is now part of the fabric of life for Chinese people who use it to chat, shop, watch videos, play games, order food and taxis, and more. Equally as impressive as its own portfolio, Tencent is also among the world's largest venture capital and investment corporations. The firm is now one of the largest shareholders in leading tech companies like Meituan, JD, DiDi, Snap, PDD, Kuaishou, Epic Games, and more.

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