NTES (NetEase) ROCE % : 28.09% (As of Mar. 2025)

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What is NetEase 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. NetEase's annualized ROCE % for the quarter that ended in Mar. 2025 was 28.09%.

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 ROCE % Chart

NetEase Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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17.73

16.77

17.16

22.10

21.06

NetEase Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
ROCE %	Get a 7-Day Free Trial															22.73	20.46	20.93	21.61	28.09

NetEase ROCE % Calculation

NetEase's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	4063.344	/	( ( (26039.183 - 7540.753)	+	(26919.328 - 6821.824) )	/ 2 )
	=	4063.344	/	( (18498.43	+	20097.504)	/ 2 )
	=	4063.344	/	19297.967
	=	21.06 %

NetEase's ROCE % of for the quarter that ended in Mar. 2025 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2025 )		(Q: Dec. 2024 )		(Q: Mar. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2025 )		(Q: Dec. 2024 )		(Q: Mar. 2025 )
	=	5761.196	/	( ( (26919.328 - 6821.824)	+	(27707.245 - 6778.335) )	/ 2 )
	=	5761.196	/	( ( 20097.504	+	20928.91 )	/ 2 )
	=	5761.196	/	20513.207
	=	28.09 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2025) 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 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

Founded in the late 1990s as an internet portal, NetEase has transformed into a leading force in the second-largest online game company gaming in China. While its initial success was built upon the massively multiplayer online role-playing game Fantasy Westward Journey, NetEase has expanded its portfolio with captivating franchises that resonate with both domestic and international players. Over the past decade, the company has created titles such as Justice, Identity V, Naraka: Bladepoint, and Eggy Party, all of which maintain significant player bases today. Beyond in-house development, the company also collaborates with likes of Microsoft and Marvel to create and publish games based on renowned IPs, including World of Warcraft, Diablo Immortal, and Marvel Rivals.