Tencent Music Entertainment Group key statistics and ratios

In fiscal 2025, Tencent Music Entertainment Group had return on equity of 14.8%, an operating margin of 40.6%, debt equal to 0.0% of equity and a current ratio of 2.22. 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.

Tencent Music Entertainment Group: financial ratios, annual
Fiscal year	2016Dec 2016	2017Dec 2017	2018Dec 2018	2019Dec 2019	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025
Gross margin	28.3%	34.7%	38.3%	34.1%	31.9%	30.1%	31.0%	35.3%	42.3%	44.2%
Operating margin	2.4%	14.5%	10.7%	18.2%	16.2%	12.2%	15.7%	21.8%	30.7%	40.6%
Net margin	1.9%	12.1%	9.7%	15.7%	14.3%	9.7%	13.0%	17.7%	23.4%	33.6%
Free-cash-flow margin	19.1%	22.1%	29.0%	24.0%	16.4%	16.3%	26.1%	25.8%	35.1%	30.2%
Return on equity	0.4%	5.6%	5.8%	9.8%	8.4%	5.9%	7.4%	9.4%	10.8%	14.8%
Return on assets	—	4.3%	5.0%	8.2%	6.7%	4.5%	5.4%	6.8%	8.0%	11.4%
Asset turnover	—	0.35	0.52	0.52	0.47	0.46	0.42	0.39	0.34	0.34
Current ratio	—	2.12	3.33	3.17	3.30	2.56	2.27	2.49	2.09	2.22
Debt to equity	0.0%	0.0%	0.0%	0.0%	9.9%	10.1%	11.5%	10.1%	—	0.0%
Effective tax rate	25.4%	17.4%	8.5%	12.4%	9.8%	11.5%	12.2%	13.6%	18.4%	14.5%
R&D as % of revenue	10.3%	7.3%	4.9%	4.6%	5.7%	7.5%	9.1%	9.1%	8.0%	7.0%
Capital spending as % of revenue	0.9%	0.7%	0.7%	0.4%	0.4%	0.5%	0.3%	0.6%	1.1%	0.9%
Free cash flow ÷ net income	>999%	182.9%	300.1%	153.3%	115.0%	167.7%	201.1%	145.8%	149.8%	89.8%
Dividends and buybacks ÷ free cash flow	—	—	—	—	2.8%	68.5%	42.3%	17.4%	19.3%	3.9%

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

3 of 3 checks passed · December 31, 2025

What it owns · $14.7bn

Short-term assets $4.6bnLonger-term assets $10.0bn

What it owes, and who funded it · $14.3bn

Short-term liabilities $2.1bnLonger-term liabilities $698mShareholders' equity $11.5bn

Short-term assets cover short-term liabilities $4.6bn of assets due within a year against $2.1bn of liabilities due within a year.
Short-term assets cover long-term liabilities $4.6bn short-term assets against $698m 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 Operating income of $1.9bn against $2m of interest.

From Tencent Music Entertainment Group'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

Not assessed: fewer than five years of comparable figures in the filings. AI disruption exposure for this industry: Medium.

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 Tencent Music Entertainment Group's SEC filings (10-K and 10-Q), retrieved November 1, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Tencent Music Entertainment Group.