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NTES · Nasdaq · United States · Services-Prepackaged Software
In shortNetEase, Inc. is profitable.
Financial health
Strong
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | 31.8% | 100/100 |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 30.0% | 100/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 22.6% | 100/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | – | n/a |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 3.45× | 100/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | – | n/a |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | – | n/a |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | – | n/a |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | 10.08 | 100/100 |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 44.1% | 100/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 1.47× | 100/100 |
| Years with positive free cash flow (last 5) | 5 of 5 | 100/100 |
Weight in the score: 20%
| Profitable years (last 5) | 5 of 5 | 100/100 |
|---|---|---|
| Years of revenue decline (last 5) | 0 of 5 | 100/100 |
| Revenue growth volatility | 6.3% | 88/100 |
| Operating margin volatility | 5.5% | 59/100 |
Weight in the score: 20%
| Revenue growth, 3-year average | 5.3% | 46/100 |
|---|---|---|
| EPS growth, 3-year average | 19.3% | 100/100 |
Weight in the score: 10%
Fiscal year 2025 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
CNY millions; negative values in parentheses.
| Fiscal year | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 87,606 | 96,496 | 103,468 | 105,295 | 112,626 |
| Cost of revenue | 40,635 | 43,730 | 40,405 | 39,488 | 40,224 |
| Gross profit | 46,971 | 52,766 | 63,063 | 65,807 | 72,402 |
| Research & development | 14,076 | 15,039 | 16,485 | 17,525 | 17,719 |
| Operating income | 16,417 | 19,629 | 27,709 | 29,584 | 35,835 |
| Pre-tax income | 21,104 | 24,250 | 34,057 | 35,718 | 40,830 |
| Income tax | 4,128 | 5,032 | 4,700 | 5,461 | 6,033 |
| Net income | 16,857 | 20,338 | 29,417 | 29,698 | 33,760 |
| Diluted EPS | ¥5.01 | ¥6.17 | ¥9.05 | ¥9.19 | ¥10.48 |
| Diluted shares (millions) | 3,367 | 3,296 | 3,252 | 3,231 | 3,218 |
5 older years available with the 10-year history. Essential plan, from €8.25/month →
10.08 Safe zone
Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.
8/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Dec 31, 2025 · Data updated Apr 15, 2026