China Mobile Ltd. (CHL) | Profitability Analysis
Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).
Ratios (Summary)
China Mobile Ltd., profitability ratios
| Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | ||
|---|---|---|---|---|---|---|
| Return on Sales | ||||||
| Operating profit margin | 26.86% | 28.66% | 31.07% | 32.52% | 34.59% | |
| Net profit margin | 23.07% | 23.84% | 24.66% | 25.47% | 27.35% | |
| Return on Investment | ||||||
| Return on equity (ROE) | 17.87% | 19.39% | 20.77% | 22.73% | 25.50% | |
| Return on assets (ROA) | 12.29% | 13.21% | 13.88% | 15.33% | 17.15% | |
Source: Based on data from China Mobile Ltd. Annual Reports
| Ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | China Mobile Ltd.'s operating profit margin deteriorated from 2010 to 2011 and from 2011 to 2012. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | China Mobile Ltd.'s net profit margin deteriorated from 2010 to 2011 and from 2011 to 2012. |
| ROE | A profitability ratio calculated as net income divided by shareholders' equity. | China Mobile Ltd.'s ROE deteriorated from 2010 to 2011 and from 2011 to 2012. |
| ROA | A profitability ratio calculated as net income divided by total assets. | China Mobile Ltd.'s ROA deteriorated from 2010 to 2011 and from 2011 to 2012. |
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Operating Profit Margin
| Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions, translated from CNY ¥) | ||||||
| Profit from operations | 24,160 | 24,039 | 22,842 | 21,537 | 20,904 | |
| Operating revenue (turnover) | 89,952 | 83,891 | 73,520 | 66,233 | 60,439 | |
| Operating Profit Margin, Comparison to Industry | ||||||
| China Mobile Ltd.1 | 26.86% | 28.66% | 31.07% | 32.52% | 34.59% | |
| Industry, Telecommunications | 15.40% | 15.82% | 20.48% | 20.17% | 21.91% | |
Source: Based on data from China Mobile Ltd. Annual Reports
2012 Calculations
1 Operating profit margin = 100 × Profit from operations ÷ Operating revenue (turnover)
= 100 × 24,160 ÷ 89,952 = 26.86%
| Ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | China Mobile Ltd.'s operating profit margin deteriorated from 2010 to 2011 and from 2011 to 2012. |
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Net Profit Margin
| Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions, translated from CNY ¥) | ||||||
| Profit attributable to equity shareholders of the Company | 20,750 | 19,999 | 18,127 | 16,872 | 16,533 | |
| Operating revenue (turnover) | 89,952 | 83,891 | 73,520 | 66,233 | 60,439 | |
| Net Profit Margin, Comparison to Industry | ||||||
| China Mobile Ltd.1 | 23.07% | 23.84% | 24.66% | 25.47% | 27.35% | |
| Industry, Telecommunications | 7.92% | 8.71% | 13.73% | 11.46% | 12.20% | |
Source: Based on data from China Mobile Ltd. Annual Reports
2012 Calculations
1 Net profit margin = 100 × Profit attributable to equity shareholders of the Company ÷ Operating revenue (turnover)
= 100 × 20,750 ÷ 89,952 = 23.07%
| Ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | China Mobile Ltd.'s net profit margin deteriorated from 2010 to 2011 and from 2011 to 2012. |
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Return on Equity (ROE)
| Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions, translated from CNY ¥) | ||||||
| Profit attributable to equity shareholders of the Company | 20,750 | 19,999 | 18,127 | 16,872 | 16,533 | |
| Equity attributable to equity shareholders of the Company | 116,121 | 103,126 | 87,297 | 74,239 | 64,826 | |
| ROE, Comparison to Industry | ||||||
| China Mobile Ltd.1 | 17.87% | 19.39% | 20.77% | 22.73% | 25.50% | |
| Industry, Telecommunications | 13.03% | 13.48% | 20.35% | 18.14% | 20.44% | |
Source: Based on data from China Mobile Ltd. Annual Reports
2012 Calculations
1 ROE = 100 × Profit attributable to equity shareholders of the Company ÷ Equity attributable to equity shareholders of the Company
= 100 × 20,750 ÷ 116,121 = 17.87%
| Ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders' equity. | China Mobile Ltd.'s ROE deteriorated from 2010 to 2011 and from 2011 to 2012. |
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Return on Assets (ROA)
| Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions, translated from CNY ¥) | ||||||
| Profit attributable to equity shareholders of the Company | 20,750 | 19,999 | 18,127 | 16,872 | 16,533 | |
| Total assets | 168,875 | 151,346 | 130,596 | 110,076 | 96,401 | |
| ROA, Comparison to Industry | ||||||
| China Mobile Ltd.1 | 12.29% | 13.21% | 13.88% | 15.33% | 17.15% | |
| Industry, Telecommunications | 4.08% | 4.38% | 6.87% | 5.86% | 6.50% | |
Source: Based on data from China Mobile Ltd. Annual Reports
2012 Calculations
1 ROA = 100 × Profit attributable to equity shareholders of the Company ÷ Total assets
= 100 × 20,750 ÷ 168,875 = 12.29%
| Ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | China Mobile Ltd.'s ROA deteriorated from 2010 to 2011 and from 2011 to 2012. |
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