The company maintains a conservative capital structure with a debt-to-equity ratio of 0.05 as of 2025Q4, supported by a substantial liquidity buffer indicated by a current ratio of 2.22.
| Total Current Assets | 32.48B | 34.54B | 29.94B | 26.56B | 26.79B | 31.69B | 3.89B | 20.78B | 7.47B | 5B |
| Cash & Short-Term Investments | 24.35B | 27.21B | 23.54B | 20.88B | 20.43B | 26.02B | 3.23B | 17.44B | 5.17B | 3.33B |
| Cash Only | 8.49B | 13.16B | 13.57B | 9.55B | 6.59B | 11.13B | 2.21B | 17.36B | 5.17B | 3.07B |
| Short-Term Investments | 15.86B | 14.04B | 9.97B | 11.33B | 13.84B | 14.89B | 1.01B | 81M | 0 | 261M |
| Accounts Receivable | 3.91B | 3.51B | 2.92B | 2.92B | 3.8B | 2.99B | 344.69M | 1.48B | 1.3B | 809M |
| Days Sales Outstanding | 43.33 | 45.08 | 38.38 | 37.65 | 44.36 | 37.41 | 4.95 | 28.51 | 43.28 | 67.71 |
| Inventory | 41.03M | 23M | 8M | 14M | 24M | 18M | 3.73M | 35M | 30M | 14M |
| Days Inventory Outstanding | 0.82 | 0.51 | 0.16 | 0.26 | 0.4 | 0.33 | 0.08 | 1.09 | 1.53 | 1.63 |
| Other Current Assets | 4.19B | 1.38B | 267M | 87M | 56M | 53M | 62.16M | 55M | 39M | 35M |
| Total Non-Current Assets | 70.11B | 55.9B | 45.6B | 40.45B | 40.46B | 36.59B | 3.68B | 23.83B | 22.53B | 18.54B |
| Property, Plant & Equipment | 1.49B | 1.1B | 857M | 721M | 526M | 487M | 46.94M | 168M | 127M | 108M |
| Fixed Asset Turnover | 22.10x | 25.87x | 32.38x | 39.31x | 59.40x | 59.86x | 541.79x | 113.01x | 86.46x | 40.38x |
| Goodwill | 20.53B | 19.65B | 19.54B | 19.49B | 19.12B | 17.49B | 2.46B | 17.09B | 16.26B | 15.76B |
| Intangible Assets | 2.9B | 4.41B | 4.47B | 4.85B | 4.32B | 2.02B | 232.86M | 1.76B | 1.72B | 2.01B |
| Long-Term Investments | 42.03B | 29.89B | 19.84B | 14.33B | 15.4B | 15.33B | 813.56M | 3.78B | 4.12B | 302M |
| Other Non-Current Assets | 2.66B | 425M | 540M | 709M | 743M | 956M | 117.15M | 901M | 204M | 272M |
| Total Assets | 102.59B | 90.44B | 75.54B | 67.01B | 67.25B | 68.27B | 7.56B | 44.6B | 30B | 23.54B |
| Asset Turnover | 0.32x | 0.31x | 0.37x | 0.42x | 0.46x | 0.43x | 3.36x | 0.43x | 0.37x | 0.19x |
| Asset Growth % | 13.43% | 19.74% | 12.73% | -0.36% | -1.49% | 802.65% | -83.04% | 48.68% | 27.47% | - |
| Total Current Liabilities | 14.6B | 16.55B | 12.01B | 11.72B | 10.45B | 9.6B | 1.23B | 6.24B | 3.53B | 2.52B |
| Accounts Payable | 6.29B | 6.88B | 5.01B | 5B | 4.33B | 3.56B | 367.37M | 1.83B | 1.04B | 998M |
| Days Payables Outstanding | 124.96 | 153.32 | 101.75 | 93.24 | 72.35 | 65.55 | 8 | 57.05 | 53.19 | 116.42 |
| Short-Term Debt | 116.07M | 2.15B | 0 | 0 | 0 | 0 | 9.91M | 0 | 0 | 0 |
| Deferred Revenue (Current) | 3.54B | 3.44B | 3.05B | 2.31B | 1.83B | 1.71B | 258.41M | 1.54B | 1.05B | 415M |
| Other Current Liabilities | 3.56B | 0 | 0 | 0 | -12M | 0 | 527.73M | 0 | 1.05B | 0 |
| Current Ratio | 2.22x | 2.09x | 2.49x | 2.27x | 2.56x | 3.30x | 3.16x | 3.33x | 2.12x | 1.98x |
| Quick Ratio | 2.22x | 2.09x | 2.49x | 2.27x | 2.56x | 3.30x | 3.16x | 3.33x | 2.11x | 1.98x |
| Cash Conversion Cycle | -80.82 | -107.73 | -63.21 | -55.33 | -27.59 | -27.81 | -2.97 | -27.45 | -8.39 | -47.07 |
| Total Non-Current Liabilities | 4.89B | 4.17B | 6.32B | 6.17B | 5.75B | 5.94B | 64.32M | 595M | 325M | 378M |
| Long-Term Debt | 3.5B | 3.57B | 5.64B | 5.54B | 5.06B | 5.17B | 0 | 0 | 0 | 0 |
| Capital Lease Obligations | 200.13M | 219M | 297M | 306M | 205M | 218M | 11.2M | 0 | 0 | 0 |
| Deferred Tax Liabilities | 504.32M | 198M | 239M | 211M | 271M | 265M | 34.02M | 354M | 304M | 350M |
| Other Non-Current Liabilities | 379.24M | 0 | 0 | 0 | 125M | 204M | 0 | 201M | 0 | 28M |
| Total Liabilities | 19.48B | 20.72B | 18.33B | 17.88B | 16.2B | 15.54B | 1.29B | 6.83B | 3.85B | 2.9B |
| Total Debt | 3.82B | 6.05B | 6.05B | 5.96B | 5.36B | 5.5B | 21.1M | 0 | 0 | 0 |
| Net Debt | -4.67B | -7.11B | -7.52B | -3.59B | -1.23B | -5.63B | -2.19B | -17.36B | -5.17B | -3.07B |
| Debt / Equity | 0.05x | 0.09x | 0.11x | 0.12x | 0.10x | 0.10x | 0.00x | - | - | - |
| Debt / EBITDA | 0.34x | 0.62x | 0.89x | 1.06x | 1.12x | 0.99x | 0.00x | - | - | - |
| Net Debt / EBITDA | -0.42x | -0.73x | -1.11x | -0.64x | -0.26x | -1.02x | -0.43x | -7.21x | -2.62x | -9.06x |
| Interest Coverage | 109.83x | 71.26x | 40.31x | 39.03x | 31.01x | 48.77x | 63.86x | 58.23x | - | - |
| Total Equity | 83.1B | 69.73B | 57.2B | 49.13B | 51.05B | 52.73B | 6.27B | 37.77B | 26.15B | 20.63B |
| Equity Growth % | 19.18% | 21.89% | 16.44% | -3.78% | -3.18% | 740.95% | -83.4% | 44.45% | 26.72% | - |
| Book Value per Share | 53.46 | 44.54 | 36.11 | 30.38 | 30.36 | 31.38 | 3.75 | 23.91 | 15.98 | 12.61 |
| Total Shareholders' Equity | 80.34B | 67.86B | 55.91B | 48.1B | 50.32B | 52.24B | 6.26B | 37.72B | 26.14B | 20.63B |
| Common Stock | 2M | 2M | 2M | 2M | 2M | 2M | 287.12K | 2M | 2M | 2M |
| Retained Earnings | 29.4B | 20.05B | 16.97B | 12.05B | 14.19B | 11.11B | 875.58M | 3.04B | 1.23B | -57M |
| Treasury Stock | -1.47B | -550M | -7B | -6.35B | -3.66B | -134M | -4.45M | 0 | 0 | 0 |
| Accumulated OCI | 0 | 19.84B | 9.66B | 6.14B | 3.73B | 6.3B | 444.32M | 903M | 997M | 617M |
| Minority Interest | 2.76B | 1.86B | 1.29B | 1.03B | 738M | 486M | 12.63M | 51M | 7M | 9M |
Regulatory and Content Licensing
According to recent financial filings, TME has significantly bolstered its equity base from $53.9 billion in 2023Q3 to $80.3 billion by 2025Q4, reflecting a consistent accumulation of retained earnings that underscores the company's strengthening financial position despite ongoing shifts in its core revenue mix.
The steady growth in equity, driven by retained earnings, suggests that the company is successfully internalizing profits rather than relying on external financing. This trajectory indicates a maturing business model that is increasingly capable of self-funding its operations and strategic initiatives.
Based on reported figures, TME maintains a conservative capital structure with a debt-to-equity ratio of just 0.05 as of 2025Q4, demonstrating that the company operates with negligible leverage and minimal refinancing risk in the current interest rate environment.
The reduction in total debt from $6.1 billion in 2023Q3 to $3.8 billion in 2025Q4 suggests a deliberate strategy to deleverage the balance sheet. This lack of reliance on debt financing provides the company with significant optionality to navigate regulatory headwinds or pursue opportunistic capital allocation.
As reported in quarterly statements, TME's asset base is heavily weighted toward intangibles, with goodwill remaining stable at $20.5 billion, which highlights the company's reliance on acquired market position and platform integration rather than heavy investment in physical property, plant, and equipment.
The minimal PPE balance of $1.5 billion relative to total assets of $102.6 billion confirms an asset-light business model that prioritizes digital reach over physical infrastructure. Investors should monitor the carrying value of goodwill, as any impairment could disproportionately impact the reported equity base.
Analysis of recent balance sheets reveals that TME maintains a current ratio of 2.22 as of 2025Q4, providing a substantial liquidity buffer that allows the firm to comfortably meet its short-term obligations while retaining significant cash reserves for potential strategic deployment.
With cash levels consistently exceeding $8 billion, the company appears well-positioned to withstand short-term operational shocks or regulatory-induced revenue volatility. This liquidity profile suggests that the firm is not under pressure to liquidate assets or access credit markets during periods of market stress.
While the balance sheet appears fortress-like, the $20.5 billion in goodwill represents a significant portion of total assets, suggesting that the company's valuation is sensitive to the long-term performance of its acquired platforms and the sustainability of its competitive moat within the Tencent ecosystem.
Investors should consider that this concentration of intangible assets may mask underlying operational risks if the social entertainment segment continues to face regulatory pressure. A potential impairment of these assets could materially alter the perceived strength of the balance sheet, warranting further investigation into the underlying cash-generating units.
Quick answers to the most common questions about buying TME stock.
As of 2025, Tencent Music Entertainment Group (TME) had total assets of $102.59B including $32.48B in current assets.
Tencent Music Entertainment Group (TME) carries total debt of $3.82B, offset by $24.35B in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Tencent Music Entertainment Group (TME) has total shareholders' equity (book value) of $80.34B ($53.46 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Tencent Music Entertainment Group (TME) reported a current ratio of 2.22x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.