Tencent Music Entertainment Z Score

The Altman Z-Score aggregates five accounting ratios into a single financial condition measure. Tencent Music carries a Z-Score of 3.64, corresponding to the stronger financial condition range.

Tencent Music Altman Z-Score

3.64

Tencent Music Z-Score Thresholds

Above 3.0: generally associated with stronger financial condition
2.7 to 3.0: transition area
1.8 to 2.7: observation area
Below 1.8: elevated distress probability area

Why Track Tencent Music Z-Score

The model’s five components span liquidity, cumulative profitability, current earnings power, market-implied solvency, and asset utilization. This breadth makes the composite more resilient than any single ratio to accounting distortions or one-time charges.

Tencent Music has a market cap of 14.29 billion, an operating margin of 0.78% (TTM), current ratio of 2.33. Margin trends and liquidity ratios are among the first indicators to shift ahead of earnings revisions. Broader economic conditions can influence Tencent Music Entertainment's company valuation - related indicators include signals in state.

Component	Value	Weight	Weighted
Working Capital / Total Assets	17.87 billion / 102.59 billion	1.2	0.21
Retained Earnings / Total Assets	29.4 billion / 102.59 billion	1.4	0.4
EBITDA / Total Assets	14.77 billion / 102.59 billion	3.3	0.48
Market Cap / Total Debt	14.29 billion / 3.82 billion	0.6	2.25
Revenue / Total Assets	32.01 billion / 102.59 billion	0.999	0.31
Z-Score			3.64

Note: Altman's original specification uses EBIT for the third factor. Using EBITDA instead of EBIT may overstate T3, potentially inflating the overall Z-Score relative to the original specification.

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Important Fundamentals

	Return On Equity TTM	0.15
	Return On Asset TTM	0.0635
	Profit Margin TTM	0.34
	Operating Margin TTM	0.0078
	Current Valuation	11.78 B
	Shares Outstanding	717.15 M
	Shares Owned By Institutions	59.98 %
	Number Of Shares Shorted	15.55 M
	Price To Earnings TTM	15.09 X
	Price To Book TTM	1.21 X
	Price To Sales TTM	0.43 X
	Revenue TTM	32.01 B
	Gross Profit TTM	14.54 B
	EBITDA TTM	14.77 B
	Net Income TTM	10.75 B
	Cash And Equivalents TTM	854 M
	Cash Per Share TTM	13.27 X
	Total Debt TTM	3.82 B
	Debt To Equity TTM	0.12 %
	Current Ratio TTM	2.33 X
	Book Value Per Share TTM	7.47 X
	Cash Flow From Operations TTM	10.16 B
	Short Ratio TTM	1.05 X
	Earnings Per Share	0.84 X
	Price To Earnings To Growth	0.82 X
	Target Price	17.67
	Number Of Employees	5.69 K
	Trailing Beta	0.78
	Market Capitalization TTM	14.29 B
	Total Asset TTM	102.59 B
	Retained Earnings TTM	29.4 B
	Working Capital TTM	17.87 B
	Annual Yield	0.0261
	Net Asset	102.59 B

Altman Z-Score Methodology & Financial Data

The Altman Z-Score for Tencent Music is calculated from five financial ratios that measure liquidity, profitability, leverage, solvency, and asset productivity. The five ratios are weighted differently in the formula, with EBIT-to-Assets and Market-to-Liabilities carrying the largest coefficients. For distress analysis, Tencent Music shows current ratio of 2.33, debt-to-equity of 0.12, working capital of 17.87 billion.

Tencent Music Entertainment analytics rely on periodic company reporting and market reference feeds, with quality checks and normalization applied.

Editorial review and methodology oversight provided by: Raphi Shpitalnik, Junior Member of Macroaxis Editorial Board