NetEase (NetEase) ROCE %

: 21.38% (As of Dec. 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. NetEase's annualized ROCE % for the quarter that ended in Dec. 2023 was 21.38%.

NetEase ROCE % Historical Data

The historical data trend for NetEase'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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NetEase Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

21.77

17.73

16.77

17.16

22.10

NetEase Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																15.37	24.62	19.37	23.65	21.38

NetEase ROCE % Calculation

NetEase'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 )
	=	3880.724	/	( ( (24780.324 - 8151.362)	+	(26039.183 - 7540.753) )	/ 2 )
	=	3880.724	/	( (16628.962	+	18498.43)	/ 2 )
	=	3880.724	/	17563.696
	=	22.10 %

NetEase's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	3847.788	/	( ( (23510.189 - 6011.143)	+	(26039.183 - 7540.753) )	/ 2 )
	=	3847.788	/	( ( 17499.046	+	18498.43 )	/ 2 )
	=	3847.788	/	17998.738
	=	21.38 %

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

NetEase (NAS:NTES) 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.

NetEase ROCE % Related Terms

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NetEase (NetEase) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » NetEase Inc (NAS:NTES) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

NETTF:USA NTESN:Mexico 09999:Hong Kong 0K6G:UK 4Y01:Germany 4Y01:Germany NEH:Germany NEH:Germany NETE34:Brazil NTES:Austria

Address

No. 599 Wangshang Road, NetEase Building, Binjiang District, Hangzhou, CHN, 310052

Website

https://ir.netease.com

NetEase, which started on an internet portal service in 1997, is a leading online services provider in China. Its key services include online/mobile games, cloud music, media, advertising, email, live streaming, online education, and e-commerce. The company develops and operates some of the China's most popular PC client and mobile games, and it partners with global leading game developers, such as Blizzard Entertainment and Mojang (a Microsoft subsidiary).