Capital Intensity
Score how much of a company is physical plant, inventory, and equipment, whether that base is being maintained, and whether the shares have tangible backing.
Tencent Holdings Ltd ADR
Physical assets are 8.7% of total assets, a light footprint. Capex is 1.71x depreciation and free cash flow yield is still positive, which fits a physical base that is being replaced or expanded without consuming all of its cash. ROIC is 17.5%, above an 8% cost-of-capital hurdle.
Technology and communication names are often asset-light, with fixed-asset turnover above 5x. This name is at 4.13x.
Physical asset ratio
8.7%
Net PP&E plus inventory, divided by total assets. Above 50% is a heavy footprint.
Fixed asset turnover
4.13x
Revenue per dollar of the physical asset base.
Capex / D&A
1.71x
Above 1.0x means the physical base is being replaced or expanded.
Tangible book / share
$108.62
Assets minus goodwill, intangibles, and liabilities, per share.
Price / tangible book
0.49x
Price $53.61.
Fixed-charge coverage
2.82x
EBITDA minus capex, divided by interest plus short-term debt.
FCF yield
39.7%
Latest free cash flow divided by current market cap ($479.52B).
ROIC
17.5%
After-tax operating income over equity plus debt minus cash.
Operating income / net PP&E is 1.34x.
Footprint and return
Turnover and reinvestment
| Year | Physical | FAT | Capex/D&A | TBV/sh | Coverage | FCF | ROIC | EBIT/PP&E |
|---|---|---|---|---|---|---|---|---|
| 2018 | 5.6% | 7.82x | 1.58x | $29.14 | 1.75x | $52.38B | 24.6% | 2.44x |
| 2019 | 6.5% | 6.12x | 1.28x | $34.22 | 2.56x | $91.60B | 21.8% | 1.93x |
| 2020 | 5.9% | 6.20x | 1.31x | $60.84 | 7.91x | $127.52B | 22.1% | 2.37x |
| 2021 | 5.5% | 6.34x | 1.08x | $69.00 | 9.34x | $113.02B | 28.8% | 3.08x |
| 2022 | 5.6% | 6.47x | 0.83x | $60.42 | 3.79x | $95.24B | 12.6% | 1.29x |
| 2023 | 5.6% | 6.98x | 0.80x | $70.63 | 2.58x | $174.56B | 14.6% | 1.83x |
| 2024 | 7.3% | 5.07x | 1.71x | $88.72 | 2.27x | $162.47B | 17.1% | 1.60x |
| 2025 | 8.7% | 4.13x | 1.71x | $108.62 | 2.82x | $190.17B | 17.5% | 1.34x |
- Principal due is the current portion of debt.
Latest year inputs (2025)
Net PP&E: $177.05B
Inventory: $530.34M
Total assets: $2,040.28B
Goodwill: $153.79B
Intangibles: $83.94B
Liabilities: $798.43B
Tangible book: $1,004.13B
Shares: 9,244,000,000
Revenue: $731.28B
Capex: $112.88B
D&A: $66.03B
EBITDA: $304.10B
Interest: $14.72B
Short-term debt: $53.16B
Free cash flow: $190.17B
Operating income: $238.07B
Invested capital: $1,127.54B
Tax rate: 17.1%