Netease, Inc. key statistics and ratios

In fiscal 2025, Netease, Inc. had return on equity of 22.4%, an operating margin of 31.8% and a current ratio of 3.45. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Netease, Inc.: financial ratios, annual
Fiscal year	2009Dec 2009	2010Dec 2010	2011Dec 2011	2012Dec 2012	2013Dec 2013	2014Dec 2014	2015Dec 2015	2016Dec 2016	2017Dec 2017	2018Dec 2018	2019Dec 2019	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025
Gross margin	72.8%	65.5%	65.8%	67.1%	68.7%	67.7%	58.8%	56.7%	56.4%	53.4%	53.3%	52.9%	53.6%	54.7%	60.9%	62.5%	64.3%
Operating margin	52.9%	45.0%	44.5%	44.3%	44.5%	38.2%	31.9%	33.1%	29.2%	19.5%	23.3%	19.7%	18.7%	20.3%	26.8%	28.1%	31.8%
Net margin	48.4%	39.5%	43.3%	43.4%	45.5%	38.1%	29.5%	30.4%	24.1%	12.0%	35.8%	16.4%	19.2%	21.1%	28.4%	28.2%	30.0%
Free-cash-flow margin	44.1%	45.2%	49.0%	48.3%	51.3%	42.8%	31.6%	37.6%	23.0%	22.0%	27.0%	32.4%	26.6%	26.5%	31.9%	36.5%	44.1%
Return on equity	24.9%	25.7%	28.1%	25.1%	24.7%	21.7%	25.9%	34.9%	25.3%	13.7%	39.9%	16.3%	19.0%	20.1%	25.4%	22.6%	22.4%
Return on assets	21.0%	21.7%	23.8%	20.8%	20.2%	17.3%	19.1%	23.8%	16.4%	7.9%	21.4%	9.2%	11.4%	12.3%	16.2%	15.6%	16.1%
Asset turnover	0.43	0.55	0.55	0.48	0.44	0.45	0.65	0.78	0.68	0.66	0.60	0.56	0.59	0.58	0.57	0.55	0.54
Current ratio	5.79	5.81	6.34	5.00	5.39	4.10	2.95	2.58	2.61	1.96	2.23	2.31	2.24	2.32	2.65	3.09	3.45
Debt to equity	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	1.3%	3.5%	0.3%	0.3%	—
Effective tax rate	14.6%	13.4%	10.9%	16.2%	10.7%	12.1%	15.7%	15.1%	15.6%	22.2%	17.8%	19.8%	19.6%	20.7%	13.8%	15.3%	14.8%
R&D as % of revenue	6.4%	5.6%	6.2%	8.6%	9.4%	10.6%	9.5%	8.0%	9.4%	14.4%	14.2%	14.1%	16.1%	15.6%	15.9%	16.6%	15.7%
Capital spending as % of revenue	10.7%	5.3%	5.5%	2.1%	2.2%	4.3%	3.8%	3.0%	3.7%	4.2%	2.0%	1.4%	1.8%	2.2%	2.2%	1.2%	0.9%
Free cash flow ÷ net income	91.2%	114.4%	113.3%	111.2%	112.9%	112.2%	107.1%	123.7%	95.6%	182.8%	75.4%	197.6%	138.4%	125.9%	112.3%	129.3%	147.1%
Dividends ÷ net income	—	—	—	—	18.3%	41.7%	21.8%	21.9%	30.4%	23.4%	41.6%	35.5%	20.8%	33.1%	27.2%	37.6%	41.0%
Dividends and buybacks ÷ free cash flow	—	—	—	10.3%	18.4%	37.2%	22.2%	26.1%	52.0%	79.6%	55.2%	18.0%	15.0%	26.3%	24.3%	29.1%	27.8%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

2 of 2 checks passed · December 31, 2025

What it owns · $31.7bn

Short-term assets $25.8bnLonger-term assets $5.8bn

What it owes, and who funded it · $31.0bn

Short-term liabilities $7.5bnLonger-term liabilities $564mShareholders' equity $22.9bn

Short-term assets cover short-term liabilities $25.8bn of assets due within a year against $7.5bn of liabilities due within a year.
Short-term assets cover long-term liabilities $25.8bn short-term assets against $564m of longer-dated liabilities.
More cash than debt Cash or debt not separately reported. Not assessable.
Debt below 40% of shareholders' equity Equity or debt not reported. Not assessable.
Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
A year's operating cash flow covers at least 20% of debt Cash flow or debt not reported. Not assessable.
Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Netease, Inc.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

86 /100

Strong moat

How hard Netease's competitive advantage looks for rivals to wear away, judged from 5 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 20 / 20

Net income has been a median 14.8% of total assets over 5 years.
Pricing power 15 / 20

Gross margin has been a median 64.3%, moving by 7.3 percentage points (standard deviation) across 5 years.
Durability 18 / 20

Operating margin has been a median 31.8%; its worst year was 18.7%.
Cash conversion 20 / 20

Free cash flow was positive in 5 of 5 years, at a median 44.1% of revenue.

AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (91 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Netease, Inc.'s SEC filings (10-K and 10-Q). How we read and check them: methodology and data sources. Not investment advice. Back to Netease, Inc.