GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Tencent Holdings Ltd (HKSE:00700) » Definitions » EBIT

Tencent Holdings (HKSE:00700) EBIT : HK$274,710 Mil (TTM As of Sep. 2023)


View and export this data going back to 2004. Start your Free Trial

What is Tencent Holdings EBIT?

Tencent Holdings's earnings before interest and taxes (EBIT) for the three months ended in Sep. 2023 was HK$54,250 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2023 was HK$274,710 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Tencent Holdings's annualized ROC % for the quarter that ended in Sep. 2023 was 11.20%. Tencent Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 241.06%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Tencent Holdings's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 8.50%.


Tencent Holdings EBIT Historical Data

The historical data trend for Tencent Holdings's EBIT 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 EBIT Chart

Tencent Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 130,291.99 222,234.25 313,439.16 245,911.75 189,452.35

Tencent Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 129,282.06 46,139.55 45,038.60 54,249.95 -

Competitive Comparison of Tencent Holdings's EBIT

For the Internet Content & Information subindustry, Tencent Holdings's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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's EV-to-EBIT Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Tencent Holdings's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Tencent Holdings's EV-to-EBIT falls into.



Tencent Holdings EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was HK$274,710 Mil.

* 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.


Tencent Holdings  (HKSE:00700) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

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

ROC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=192520.664 * ( 1 - 23.03% )/( (1364940.774 + 1281981.104)/ 2 )
=148183.1550808/1323460.939
=11.20 %

where

Invested Capital(Q: Jun. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1681690.87 - 161930.928 - ( 380337.028 - max(0, 381580.656 - 536399.824+380337.028))
=1364940.774

Invested Capital(Q: Sep. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1653289.651 - 217206.843 - ( 388850.506 - max(0, 388688.527 - 542790.231+388850.506))
=1281981.104

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

2. Joel Greenblatt's definition of Return on Capital:

Tencent Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2023  Q: Sep. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=216999.812/( ( (90107.829 + max(-188139.004, 0)) + (89928.149 + max(-163712.075, 0)) )/ 2 )
=216999.812/( ( 90107.829 + 89928.149 )/ 2 )
=216999.812/90017.989
=241.06 %

where Working Capital is:

Working Capital(Q: Jun. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(50502.035 + 2357.097 + 68167.685) - (161930.928 + 0 + 147234.893)
=-188139.004

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(50767.95 + 1797.855 + 101373.92) - (217206.843 + 0 + 100444.957)
=-163712.075

When net working capital is negative, 0 is used.

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

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Tencent Holdings's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Sep. 2023 )
=274710.163/3233627.760
=8.50 %

* 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.


Tencent Holdings EBIT Related Terms

Thank you for viewing the detailed overview of Tencent Holdings's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.


Tencent Holdings (HKSE:00700) Business Description

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

Tencent Holdings (HKSE:00700) Headlines

No Headlines