Operating Margin % is calculated as Operating Income divided by its Revenue. Tencent Holdings's Operating Income for the
three
months ended in Sep. 2023 was HK$48,130 Mil. Tencent Holdings's Revenue for the
three
months ended in Sep. 2023 was HK$165,867 Mil. Therefore, Tencent Holdings's Operating Margin % for the quarter that ended in Sep. 2023 was 29.02%.
Warning Sign:
Tencent Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Tencent Holdings's Operating Margin % or its related term are showing as below:
HKSE:00700'
s Operating Margin % Range Over the Past 10 Years
Min: 20.55 Med: 26.89 Max: 35.72
Current: 25.81
HKSE:00700's Operating Margin % is ranked better than 87.09% of 581
companies
in the Interactive Media industry
Industry Median: 1.21
vs HKSE:00700: 25.81
Tencent Holdings's 5-Year Average Operating Margin % Growth Rate was -1.20% per year.
Tencent Holdings's Operating Income for the
three
months ended in Sep. 2023 was HK$48,130 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was HK$170,791 Mil.
Tencent Holdings Operating Margin % Historical Data
The historical data trend for Tencent Holdings's Operating Margin % 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 Holdings Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Operating Margin %
25.70
26.57
22.21
20.55
27.20
Tencent Holdings Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Operating Margin %
21.15
26.18
26.78
29.02
-
Competitive Comparison
For the Internet Content & Information subindustry, Tencent Holdings's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tencent Holdings Operating Margin % Distribution
For the Interactive Media industry and Communication Services sector, Tencent Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tencent Holdings's Operating Margin % falls into.
Tencent Holdings Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Tencent Holdings's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Tencent Holdings Operating Margin % Related Terms
Thank you for viewing the detailed overview of Tencent Holdings's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tencent Holdings (HKSE:00700) Business Description
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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