Tencent Holdings (WBO:NNND) Gross Margin %

: 49.49% (As of Sep. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Tencent Holdings's Gross Profit for the three months ended in Sep. 2023 was €9,825 Mil. Tencent Holdings's Revenue for the three months ended in Sep. 2023 was €19,853 Mil. Therefore, Tencent Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 49.49%.

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

WBO:NNND' s Gross Margin % Range Over the Past 10 Years
Min: 43.05 Med: 47.04 Max: 60.89
Current: 46.28

During the past 13 years, the highest Gross Margin % of Tencent Holdings was 60.89%. The lowest was 43.05%. And the median was 47.04%.

WBO:NNND's Gross Margin % is ranked worse than
64.94% of 522 companies
in the Interactive Media industry
Industry Median: 60.895 vs WBO:NNND: 46.28

Tencent Holdings had a gross margin of 49.49% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Tencent Holdings was 0.40% per year.

Tencent Holdings Gross Margin % Historical Data

The historical data trend for Tencent Holdings's Gross 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

Gross Margin %

44.40

45.95

43.91

43.05

48.13

Tencent Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %																42.65	45.46	47.48	49.49	-

Competitive Comparison

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

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

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

Tencent Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Tencent Holdings's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	37643.3	/	78214.441
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(78214.441 - 40571.104)	/	78214.441
	=	48.13 %

Tencent Holdings's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	9825	/	19852.783
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(19852.783 - 10027.758)	/	19852.783
	=	49.49 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Tencent Holdings (WBO:NNND) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Tencent Holdings had a gross margin of 49.49% for the quarter that ended in Sep. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Tencent Holdings Gross Margin % Related Terms

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Tencent Holdings (WBO:NNND) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Tencent Holdings Ltd (WBO:NNND) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

TCTZF:USA TCEHY:USA TCEHY:Mexico 00700:Hong Kong 0Z4S:UK NNN:Germany

Address

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

Website

http://www.tencent.com

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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