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Tencent Holdings ROA %

: 6.05% (As of Mar. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Tencent Holdings's annualized Net Income for the quarter that ended in Mar. 2022 was HK$115,472 Mil. Tencent Holdings's average Total Assets over the quarter that ended in Mar. 2022 was HK$1,908,281 Mil. Therefore, Tencent Holdings's annualized ROA % for the quarter that ended in Mar. 2022 was 6.05%.

The historical rank and industry rank for Tencent Holdings's ROA % or its related term are showing as below:

HKSE:00700' s ROA % Range Over the Past 10 Years
Min: 11.03   Med: 14.87   Max: 19.41
Current: 13.22

During the past 13 years, Tencent Holdings's highest ROA % was 19.41%. The lowest was 11.03%. And the median was 14.87%.

HKSE:00700's ROA % is ranked better than
81.98% of 605 companies
in the Interactive Media industry
Industry Median: 0.76 vs HKSE:00700: 13.22

Tencent Holdings ROA % Historical Data

The historical data trend for Tencent Holdings's ROA % 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 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.39 12.09 11.03 14.34 15.49

Tencent Holdings Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
ROA % 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 Premium Member Only Premium Member Only Premium Member Only 13.90 11.66 10.23 24.08 6.05

Competitive Comparison

For the Internet Content & Information subindustry, Tencent Holdings's ROA %, along with its competitors' market caps and ROA % 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 ROA % Distribution

For the Interactive Media industry and Communication Services sector, Tencent Holdings's ROA % distribution charts can be found below:

* The bar in red indicates where Tencent Holdings's ROA % falls into.



Tencent Holdings ROA % Calculation

Tencent Holdings's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:

ROA %=Net Income (A: Dec. 2021 )/( (Total Assets (A: Dec. 2020 )+Total Assets (A: Dec. 2021 ))/ count )
=275287.20236133/( (1580685.5867601+1974287.1015653)/ 2 )
=275287.20236133/1777486.3441627
=15.49 %

Tencent Holdings's annualized ROA % for the quarter that ended in Mar. 2022 is calculated as:

ROA %=Net Income (Q: Mar. 2022 )/( (Total Assets (Q: Dec. 2021 )+Total Assets (Q: Mar. 2022 ))/ count )
=115471.56094947/( (1974287.1015653+1842275.195032)/ 2 )
=115471.56094947/1908281.1482987
=6.05 %

* 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.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Mar. 2022) net income data. ROA % is displayed in the 30-year financial page.


Tencent Holdings  (HKSE:00700) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Mar. 2022 )
=Net Income/Total Assets
=115471.56094947/1908281.1482987
=(Net Income / Revenue)*(Revenue / Total Assets)
=(115471.56094947 / 668135.13148189)*(668135.13148189 / 1908281.1482987)
=Net Margin %*Asset Turnover
=17.28 %*0.3501
=6.05 %

Note: The Net Income data used here is four times the quarterly (Mar. 2022) net income data. The Revenue data used here is four times the quarterly (Mar. 2022) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Tencent Holdings ROA % Related Terms

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Tencent Holdings Business Description

Tencent Holdings logo
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 Headlines

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