Tencent Music Entertainment Group (Tencent Music Entertainment Group) ROCE % : 11.10% (As of Dec. 2023)

View and export this data going back to 2018. Start your Free Trial

What is Tencent Music Entertainment Group ROCE %?

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 Music Entertainment Group's annualized ROCE % for the quarter that ended in Dec. 2023 was 11.10%.

Tencent Music Entertainment Group ROCE % Historical Data

The historical data trend for Tencent Music Entertainment Group'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.

* Premium members only.

Tencent Music Entertainment Group ROCE % Chart

Tencent Music Entertainment Group Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

Get a 7-Day Free Trial

11.07

9.47

6.59

7.64

10.27

Tencent Music Entertainment Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															10.31	9.94	10.39	9.53	11.10

Tencent Music Entertainment Group ROCE % Calculation

Tencent Music Entertainment Group'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 )
	=	863.981	/	( ( (9611.573 - 1680.652)	+	(10578.975 - 1682.586) )	/ 2 )
	=	863.981	/	( (7930.921	+	8896.389)	/ 2 )
	=	863.981	/	8413.655
	=	10.27 %

Tencent Music Entertainment Group'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 )
	=	961.876	/	( ( (9996.848 - 1563.875)	+	(10578.975 - 1682.586) )	/ 2 )
	=	961.876	/	( ( 8432.973	+	8896.389 )	/ 2 )
	=	961.876	/	8664.681
	=	11.10 %

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

Tencent Music Entertainment Group (NYSE:TME) 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 Music Entertainment Group ROCE % Related Terms

Thank you for viewing the detailed overview of Tencent Music Entertainment Group's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

Tencent Music Entertainment Group (Tencent Music Entertainment Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Tencent Music Entertainment Group (NYSE:TME) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

01698:Hong Kong 0A2Z:UK 63TA:Germany

Address

Kexing Science Park, Kejizhongsan Avenue, Unit 3, Building D, Hi-Tech Park, Nanshan District, Shenzhen, CHN, 518057

Website

https://www.tencentmusic.com

TME is the largest online music service provider in China. It was founded in 2016 with the business combination of QQ Music (founded in 2005), Kuwo Music (founded in 2005) and Kugou Music (founded in 2004) streaming platforms. Tencent is the largest shareholder of TME with over 50% shares and over 90% voting rights held. TME also provides social entertainment services, including music live audio/video broadcasts and online concert services through the three platforms mentioned above, and online karaoke through an independent platform WeSing.