GURUFOCUS.COM » STOCK LIST » Asia » Hong Kong » HKSE » Tencent Holdings Ltd (HKSE:00700) » Definitions » Debt-to-EBITDA
Switch to:

Tencent Holdings Debt-to-EBITDA

: 2.74 (As of Mar. 2022)
View and export this data going back to 2004. Start your Free Trial

Debt-to-EBITDA measures a company's ability to pay off its debt.

Tencent Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was HK$45,741 Mil. Tencent Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was HK$372,254 Mil. Tencent Holdings's annualized EBITDA for the quarter that ended in Mar. 2022 was HK$152,579 Mil. Tencent Holdings's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2022 was 2.74.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Tencent Holdings's Debt-to-EBITDA or its related term are showing as below:

HKSE:00700' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.59   Med: 1.13   Max: 1.65
Current: 1.5

During the past 13 years, the highest Debt-to-EBITDA Ratio of Tencent Holdings was 1.65. The lowest was 0.59. And the median was 1.13.

HKSE:00700's Debt-to-EBITDA is ranked worse than
67.14% of 283 companies
in the Interactive Media industry
Industry Median: 0.68 vs HKSE:00700: 1.50

Tencent Holdings Debt-to-EBITDA Historical Data

The historical data trend for Tencent Holdings's Debt-to-EBITDA 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
Debt-to-EBITDA
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.15 1.34 1.44 1.10 1.03

Tencent Holdings Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Debt-to-EBITDA 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 1.16 1.50 1.75 0.79 2.74

Competitive Comparison

For the Internet Content & Information subindustry, Tencent Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA Distribution

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

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



Tencent Holdings Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Tencent Holdings's Debt-to-EBITDA for the fiscal year that ended in Dec. 2021 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(29937.002653353 + 366148.80332219) / 384054.18962837
=1.03

Tencent Holdings's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2022 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(45741.29722914 + 372254.36062163) / 152579.49349053
=2.74

* 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 Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2022) EBITDA data.


Tencent Holdings  (HKSE:00700) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Tencent Holdings Debt-to-EBITDA Related Terms

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


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

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)