Netease Financials

NTES

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2024 Currency USD FYE December

This page shows Netease (NTES) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Financial Profile 85/100

Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

100

Netease has an operating margin of 28.1%, meaning the company retains $28 of operating profit per $100 of revenue. This strong profitability earns a score of 100/100, reflecting efficient cost management and pricing power. This is up from 26.8% the prior year.

Growth

Netease's revenue declined 1% year-over-year, from $14.6B to $14.4B. This contraction results in a growth score of 26/100.

Leverage

100

Netease carries a low D/E ratio of 0.00, meaning only $0.00 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

100

With a current ratio of 3.09, Netease holds $3.09 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 100/100.

Cash Flow

100

Netease converts 36.5% of revenue into free cash flow ($5.3B). This strong cash generation earns a score of 100/100.

Returns

Netease earns a strong 21.8% return on equity (ROE), meaning it generates $22 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 87/100. This is down from 23.6% the prior year.

Altman Z-Score Safe

8.85

Netease scores 8.85, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($76.4B) relative to total liabilities ($7.3B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Strong

7/9

Netease passes 7 of 9 financial strength tests. 3 of 4 profitability signals pass, all 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Cash-Backed

1.31x

For every $1 of reported earnings, Netease generates $1.31 in operating cash flow ($5.4B OCF vs $4.1B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

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Revenue

$14.4B

YoY-1.0%

5Y CAGR+11.1%

10Y CAGR+21.8%

Netease generated $14.4B in revenue in fiscal year 2024. This represents a decrease of 1.0% from the prior year.

EBITDA

$4.4B

YoY+1.2%

5Y CAGR+13.2%

10Y CAGR+18.6%

Netease's EBITDA was $4.4B in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 1.2% from the prior year.

Free Cash Flow

$5.3B

YoY+13.1%

5Y CAGR+18.0%

10Y CAGR+19.9%

Netease generated $5.3B in free cash flow in fiscal year 2024, representing cash available after capex. This represents an increase of 13.1% from the prior year.

Net Income

$4.1B

YoY+0.2%

5Y CAGR+6.1%

10Y CAGR+18.4%

Netease reported $4.1B in net income in fiscal year 2024. This represents an increase of 0.2% from the prior year.

EPS (Diluted)

$1.26

YoY-0.8%

5Y CAGR+6.0%

10Y CAGR+18.5%

Netease earned $1.26 per diluted share (EPS) in fiscal year 2024. This represents a decrease of 0.8% from the prior year.

Cash & Debt

$7.0B

YoY+133.2%

5Y CAGR+72.1%

10Y CAGR+36.6%

Netease held $7.0B in cash against $58.6M in long-term debt as of fiscal year 2024.

Dividends Per Share

N/A

Shares Outstanding

3.17B

YoY-1.3%

5Y CAGR-0.4%

10Y CAGR-0.3%

Netease had 3.17B shares outstanding in fiscal year 2024. This represents a decrease of 1.3% from the prior year.

Gross Margin

62.5%

YoY+1.5pp

5Y CAGR+9.2pp

10Y CAGR-5.2pp

Netease's gross margin was 62.5% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is up 1.5 percentage points from the prior year.

Operating Margin

28.1%

YoY+1.3pp

5Y CAGR+4.8pp

10Y CAGR-10.1pp

Netease's operating margin was 28.1% in fiscal year 2024, reflecting core business profitability. This is up 1.3 percentage points from the prior year.

Net Margin

28.7%

YoY+0.4pp

5Y CAGR-7.5pp

10Y CAGR-9.4pp

Netease's net profit margin was 28.7% in fiscal year 2024, showing the share of revenue converted to profit. This is up 0.4 percentage points from the prior year.

Return on Equity

21.8%

YoY-1.8pp

5Y CAGR-13.1pp

10Y CAGR+1.5pp

Netease's ROE was 21.8% in fiscal year 2024, measuring profit generated per dollar of shareholder equity. This is down 1.8 percentage points from the prior year.

R&D Spending

$2.4B

YoY+3.4%

5Y CAGR+14.7%

10Y CAGR+27.4%

Netease invested $2.4B in research and development in fiscal year 2024. This represents an increase of 3.4% from the prior year.

Share Buybacks

N/A

Capital Expenditures

$174.7M

YoY-46.1%

5Y CAGR+0.1%

10Y CAGR+7.3%

Netease invested $174.7M in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents a decrease of 46.1% from the prior year.

NTES Income Statement

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Revenue	$14.4B-1.0%	$14.6B+4.2%	$14.0B+1.8%	$13.7B+21.8%	$11.3B+32.7%	$8.5B
Cost of Revenue	$5.4B-4.9%	$5.7B-10.2%	$6.3B-0.6%	$6.4B+20.0%	$5.3B+33.7%	$4.0B
Gross Profit	$9.0B+1.5%	$8.9B+16.1%	$7.7B+3.8%	$7.4B+23.4%	$6.0B+31.8%	$4.5B
R&D Expenses	$2.4B+3.4%	$2.3B+6.5%	$2.2B-1.3%	$2.2B+39.0%	$1.6B+31.5%	$1.2B
SG&A Expenses	$623.4M-9.7%	$690.1M+1.4%	$680.8M+1.8%	$669.0M+29.5%	$516.8M+14.9%	$449.6M
Operating Income	$4.1B+3.8%	$3.9B+37.1%	$2.8B+10.5%	$2.6B+15.6%	$2.2B+12.5%	$2.0B
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	$748.2M+13.0%	$661.9M-9.3%	$729.5M+12.6%	$647.8M+39.0%	$466.2M+11.3%	$418.7M
Net Income	$4.1B+0.2%	$4.1B+43.7%	$2.9B+8.0%	$2.7B+41.0%	$1.9B-38.6%	$3.1B
EPS (Diluted)	$1.26-0.8%	$1.27+42.7%	$0.89+12.7%	$0.79+43.6%	$0.55-41.5%	$0.94

Metric	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19	Q4'18	Q4'17
Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
EPS (Diluted)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

NTES Balance Sheet

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Total Assets	$26.9B+2.5%	$26.2B+4.5%	$25.0B+3.9%	$24.1B+10.9%	$21.7B+35.0%	$16.1B
Current Assets	$21.0B+4.5%	$20.1B+5.3%	$19.1B+7.5%	$17.8B+7.4%	$16.5B+35.2%	$12.2B
Cash & Equivalents	$7.0B+133.2%	$3.0B-16.4%	$3.6B+58.6%	$2.3B+62.8%	$1.4B+199.6%	$466.3M
Inventory	$78.3M-20.1%	$97.9M-32.0%	$144.1M-4.8%	$151.4M+59.0%	$95.2M+1.9%	$93.4M
Accounts Receivable	$776.7M-14.1%	$904.6M+24.7%	$725.3M-16.1%	$864.3M+23.2%	$701.4M+17.1%	$598.9M
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$7.3B-10.0%	$8.1B-12.0%	$9.3B+8.9%	$8.5B+15.5%	$7.4B+31.3%	$5.6B
Current Liabilities	$6.8B-10.3%	$7.6B-8.0%	$8.2B+4.0%	$7.9B+10.6%	$7.2B+30.4%	$5.5B
Long-Term Debt	$58.6M-2.7%	$60.3M-88.6%	$529.9M+164.8%	$200.1M	N/A	N/A
Total Equity	$19.0B+8.5%	$17.5B+15.3%	$15.2B+1.5%	$15.0B+18.9%	$12.6B+42.6%	$8.8B
Retained Earnings	$17.9B+13.0%	$15.8B+19.7%	$13.2B+8.6%	$12.2B+23.7%	$9.8B+21.4%	$8.1B

Metric	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19	Q4'18	Q4'17
Total Assets	$26.9B+2.5%	$26.2B+4.5%	$25.0B+3.9%	$24.1B+10.9%	$21.7B+35.0%	$16.1B+27.3%	$12.6B+15.9%	$10.9B
Current Assets	$21.0B+4.5%	$20.1B+5.3%	$19.1B+7.5%	$17.8B+7.4%	$16.5B+35.2%	$12.2B+22.3%	$10.0B+5.0%	$9.5B
Cash & Equivalents	$7.0B+133.2%	$3.0B-16.4%	$3.6B+58.6%	$2.3B+62.8%	$1.4B+199.6%	$466.3M-40.5%	$783.8M+84.5%	$424.8M
Inventory	$78.3M-20.1%	$97.9M-32.0%	$144.1M-4.8%	$151.4M+59.0%	$95.2M+1.9%	$93.4M-87.2%	$729.8M-13.3%	$841.5M
Accounts Receivable	$776.7M-14.1%	$904.6M+24.7%	$725.3M-16.1%	$864.3M+23.2%	$701.4M+17.1%	$598.9M-4.0%	$623.7M+12.1%	$556.3M
Goodwill	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Liabilities	$7.3B-10.0%	$8.1B-12.0%	$9.3B+8.9%	$8.5B+15.5%	$7.4B+31.3%	$5.6B+8.6%	$5.2B+40.3%	$3.7B
Current Liabilities	$6.8B-10.3%	$7.6B-8.0%	$8.2B+4.0%	$7.9B+10.6%	$7.2B+30.4%	$5.5B+7.6%	$5.1B+39.9%	$3.7B
Long-Term Debt	$58.6M-2.7%	$60.3M-88.6%	$529.9M+164.8%	$200.1M	N/A	N/A	N/A	N/A
Total Equity	$19.0B+8.5%	$17.5B+15.3%	$15.2B+1.5%	$15.0B+18.9%	$12.6B+42.6%	$8.8B+34.2%	$6.6B-6.4%	$7.0B
Retained Earnings	$17.9B+13.0%	$15.8B+19.7%	$13.2B+8.6%	$12.2B+23.7%	$9.8B+21.4%	$8.1B+26.6%	$6.4B-2.6%	$6.6B

NTES Cash Flow Statement

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Operating Cash Flow	$5.4B+9.2%	$5.0B+23.9%	$4.0B+2.7%	$3.9B+2.6%	$3.8B+54.2%	$2.5B
Capital Expenditures	$174.7M-46.1%	$324.2M+6.5%	$304.5M+21.1%	$251.4M+55.4%	$161.8M-6.9%	$173.7M
Free Cash Flow	$5.3B+13.1%	$4.7B+25.3%	$3.7B+1.4%	$3.7B+0.2%	$3.7B+58.9%	$2.3B
Investing Cash Flow	$2.5B+202.3%	-$2.4B-124.7%	-$1.1B+3.8%	-$1.1B+75.2%	-$4.5B-40.7%	-$3.2B
Financing Cash Flow	-$3.7B-23.9%	-$3.0B-103.7%	-$1.5B+24.8%	-$2.0B-230.0%	$1.5B+877.0%	$155.5M
Dividends Paid	$1.5B+35.5%	$1.1B+15.8%	$974.8M+77.1%	$550.5M-16.1%	$656.0M-48.3%	$1.3B
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19	Q4'18	Q4'17
Operating Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Financing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

NTES Financial Ratios

Metric	FY24	FY23	FY22	FY21	FY20	FY19
Gross Margin	62.5%+1.5pp	61.0%+6.3pp	54.7%+1.1pp	53.6%+0.7pp	52.9%-0.3pp	53.3%
Operating Margin	28.1%+1.3pp	26.8%+6.4pp	20.3%+1.6pp	18.7%-1.0pp	19.7%-3.5pp	23.3%
Net Margin	28.7%+0.4pp	28.4%+7.8pp	20.6%+1.2pp	19.4%+2.6pp	16.7%-19.4pp	36.2%
Return on Equity	21.8%-1.8pp	23.6%+4.7pp	18.9%+1.1pp	17.8%+2.8pp	15.0%-19.9pp	34.9%
Return on Assets	15.4%-0.4pp	15.8%+4.3pp	11.5%+0.4pp	11.1%+2.4pp	8.7%-10.4pp	19.1%
Current Ratio	3.09+0.4	2.65+0.3	2.32+0.1	2.24-0.1	2.31+0.1	2.23
Debt-to-Equity	0.000.0	0.00-0.0	0.03+0.0	0.01-0.6	0.59-0.1	0.64
FCF Margin	36.5%+4.6pp	31.9%+5.4pp	26.5%-0.1pp	26.6%-5.7pp	32.4%+5.3pp	27.0%

Metric	Q4'24	Q4'23	Q4'22	Q4'21	Q4'20	Q4'19	Q4'18	Q4'17
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Equity	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Assets	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Current Ratio	3.09+0.4	2.65+0.3	2.32+0.1	2.24-0.1	2.31+0.1	2.23+0.3	1.96-0.7	2.61
Debt-to-Equity	0.000.0	0.00-0.0	0.03+0.0	0.01-0.6	0.59-0.1	0.64-0.2	0.79+0.3	0.52
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

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Frequently Asked Questions

What is Netease's annual revenue?

Netease (NTES) reported $14.4B in total revenue for fiscal year 2024. This represents a -1.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Netease's revenue growing?

Netease (NTES) revenue declined by 1% year-over-year, from $14.6B to $14.4B in fiscal year 2024.

Is Netease profitable?

Yes, Netease (NTES) reported a net income of $4.1B in fiscal year 2024, with a net profit margin of 28.7%.

What is Netease's earnings per share (EPS)?

Netease (NTES) reported diluted earnings per share of $1.26 for fiscal year 2024. This represents a -0.8% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

What is Netease's EBITDA?

Netease (NTES) had EBITDA of $4.4B in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Netease have?

As of fiscal year 2024, Netease (NTES) had $7.0B in cash and equivalents against $58.6M in long-term debt.

What is Netease's gross margin?

Netease (NTES) had a gross margin of 62.5% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.

What is Netease's operating margin?

Netease (NTES) had an operating margin of 28.1% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.

What is Netease's net profit margin?

Netease (NTES) had a net profit margin of 28.7% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.

What is Netease's return on equity (ROE)?

Netease (NTES) has a return on equity of 21.8% for fiscal year 2024, measuring how efficiently the company generates profit from shareholder equity.

What is Netease's free cash flow?

Netease (NTES) generated $5.3B in free cash flow during fiscal year 2024. This represents a 13.1% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Netease's operating cash flow?

Netease (NTES) generated $5.4B in operating cash flow during fiscal year 2024, representing cash generated from core business activities.

What are Netease's total assets?

Netease (NTES) had $26.9B in total assets as of fiscal year 2024, including both current and long-term assets.

What are Netease's capital expenditures?

Netease (NTES) invested $174.7M in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.

How much does Netease spend on research and development?

Netease (NTES) invested $2.4B in research and development during fiscal year 2024.

How many shares does Netease have outstanding?

Netease (NTES) had 3.17B shares outstanding as of fiscal year 2024.

What is Netease's current ratio?

Netease (NTES) had a current ratio of 3.09 as of fiscal year 2024, which is generally considered healthy.

What is Netease's debt-to-equity ratio?

Netease (NTES) had a debt-to-equity ratio of 0.00 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Netease's return on assets (ROA)?

Netease (NTES) had a return on assets of 15.4% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.

What is Netease's Altman Z-Score?

Netease (NTES) has an Altman Z-Score of 8.85, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Netease's Piotroski F-Score?

Netease (NTES) has a Piotroski F-Score of 7 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Netease's earnings high quality?

Netease (NTES) has an earnings quality ratio of 1.31x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

How financially healthy is Netease?

Netease (NTES) scores 85 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.