Tencent Holdings (WBO:NNN1) ROCE % : 20.51% (As of Sep. 2024)

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What is Tencent Holdings 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. Tencent Holdings's annualized ROCE % for the quarter that ended in Sep. 2024 was 20.51%.

Tencent Holdings ROCE % Historical Data

The historical data trend for Tencent Holdings'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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Tencent Holdings ROCE % Chart

Tencent Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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19.00

20.91

23.57

18.47

14.25

Tencent Holdings Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															17.06	13.54	19.17	19.49	20.51

Tencent Holdings ROCE % Calculation

Tencent Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	22244.847	/	( ( (213686.14 - 58793.203)	+	(202562.195 - 45226.74) )	/ 2 )
	=	22244.847	/	( (154892.937	+	157335.455)	/ 2 )
	=	22244.847	/	156114.196
	=	14.25 %

Tencent Holdings's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	33826.464	/	( ( (211927.045 - 49663.026)	+	(219438.193 - 51922.99) )	/ 2 )
	=	33826.464	/	( ( 162264.019	+	167515.203 )	/ 2 )
	=	33826.464	/	164889.611
	=	20.51 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Tencent Holdings (WBO:NNN1) 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.

Tencent Holdings ROCE % Related Terms

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Tencent Holdings Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Tencent Holdings Ltd (WBO:NNN1) » Definitions » ROCE %

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Address

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

Website

http://www.tencent.com

Tencent holds a prominent position in China's internet sector, with a diverse portfolio of products and services used daily by a significant portion of the population. The company is the world's largest video game publisher and owns Honor of Kings, a top-grossing mobile game globally. Tencent also operates WeChat, China's largest social media super app, which has become deeply integrated into the daily lives of Chinese people for communication, entertainment, shopping, and more. Beyond its offerings, Tencent is a significant player in global venture capital and investment. The company holds substantial stakes in leading tech companies, including PDD, Kuaishou, and Epic Games.

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