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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.

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 10.75% 9.30% 14.82% 15.39% –%

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.

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 3.35% 2.67% 9.71% 7.01% –%

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.

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 6.48% 4.49% 14.92% 11.28% –%

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.

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 1.64% 1.27% 4.59% 3.26% –%

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.