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Tencent Holdings Operating Margin %

: 23.37% (As of Jun. 2021)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Tencent Holdings's Operating Income for the three months ended in Jun. 2021 was $5,030 Mil. Tencent Holdings's Revenue for the three months ended in Jun. 2021 was $21,519 Mil. Therefore, Tencent Holdings's Operating Margin % for the quarter that ended in Jun. 2021 was 23.37%.

Warning Sign:

Tencent Holdings Ltd operating margin has been in 5-year decline. The average rate of decline per year is -6.7%.

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

OTCPK:TCEHY' s Operating Margin % Range Over the Past 10 Years
Min: 24.95   Med: 31.5   Max: 40.36
Current: 25.09

24.95
40.36

OTCPK:TCEHY's Operating Margin % is ranked higher than
92% of the 79 Companies
in the Interactive Media industry.

( Industry Median: 3.71 vs. OTCPK:TCEHY: 25.09 )

Tencent Holdings's 5-Year Average Operating Margin % Growth Rate was -6.70% per year.

Tencent Holdings's Operating Income for the three months ended in Jun. 2021 was $5,030 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2021 was $20,366 Mil.


Tencent Holdings Operating Margin % Historical Data

The historical data trend for Tencent Holdings's Operating 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 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 33.36 29.63 24.95 25.70 26.57

Tencent Holdings Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Operating Margin % 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 26.65 26.07 23.23 27.84 23.37

Competitive Comparison

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

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

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



Tencent Holdings Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Tencent Holdings's Operating Margin % for the fiscal year that ended in Dec. 2020 is calculated as

Operating Margin %=Operating Income (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=19584.817946875 / 73717.982047008
=26.57 %

Tencent Holdings's Operating Margin % for the quarter that ended in Jun. 2021 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2021 ) / Revenue (Q: Jun. 2021 )
=5029.5719844358 / 21518.910505837
=23.37 %

* 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  (OTCPK:TCEHY) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Tencent Holdings Operating Margin % Related Terms

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


Tencent Holdings Business Description

Tencent Holdings logo
Industry
Address
No. 33 Haitian 2nd Road, Tencent Binhai Towers, Nanshan District, Shenzhen, CHN, 518054
Tencent is a Chinese Internet giant with businesses and investments in a wide variety of Internet services and contents. Major services include communication and social networking (Weixin/Weixin and QQ), online PC and mobile games, content (news, videos, music, comics, and literature), utilities (email, app store, mobile security, and mobile browser), cloud services, and financial technology. Tenpay in Weixin/Weixin and QQ is a payment solution that enables closed-loop transactions in Tencent's ecosystems and has been adopted by many third-party partners and offline merchants. Tencent has an aggregate monthly active user base of less than 600 million for QQ and over 1.2 billion for Weixin/Weixin.

Tencent Holdings Headlines

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