Alibaba Group HoldingBABA +11.05%87 Cash Ratio is 0.67 as of Mar. 2026, which is 49% below its 10-year median of 1.32. GuruFocus rates BABA with a GF Score™ of 87/100 and a GF Value™ of $103.22 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,107 Retail - Cyclical companies, Alibaba Group Holding ranks better than 68.47% on this metric.
Alibaba Group Holding has a Cash Ratio of 0.67. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Alibaba Group Holding's Cash Ratio or its related term are showing as below:
BABA'
s Cash Ratio Range Over the Past 10 Years
Min: 0.67 Med: 1.32 Max: 1.61
Current: 0.67
During the past 13 years, Alibaba Group Holding's highest Cash Ratio was 1.61. The lowest was 0.67. And the median was 1.32.
BABA's Cash Ratio is ranked better than 68.47% of 1107
companies
in the Retail - Cyclical industry
Industry Median: 0.36
vs BABA: 0.67
Alibaba Group Holding (NYSE:BABA) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Internet Retail subindustry, Alibaba Group Holding's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alibaba Group Holding Cash Ratio vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Alibaba Group Holding's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Alibaba Group Holding's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Alibaba Group Holding (BABA) has a Cash Ratio of 0.67 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Alibaba Group Holding and its competitors. This is 49% below median its historical median of 1.32. Over the past decade, Alibaba Group Holding's Cash Ratio has ranged from 0.67 to 1.61. According to the industry distribution chart, Alibaba Group Holding ranks #349 out of 1107 companies in the Retail - Cyclical industry, placing it in the top 31.5%.
Is Alibaba Group Holding's Cash Ratio too high?
Alibaba Group Holding's current Cash Ratio of 0.67 is 49% below median its 10-year median of 1.32. Over the past 10 years, this metric has ranged from a low of 0.67 to a high of 1.61. The Retail - Cyclical industry median Cash Ratio is 0.36. Alibaba Group Holding's value of 0.67 is 86.1% above this industry median. Based on the distribution chart, Alibaba Group Holding ranks #349 out of 1107 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Alibaba Group Holding has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Alibaba Group Holding's Cash Ratio compare to PDD and MELI?
According to the Retail - Cyclical industry distribution chart, Alibaba Group Holding ranks #349 out of 1107 companies for Cash Ratio. This puts Alibaba Group Holding in the upper half of its industry. The industry median Cash Ratio is 0.36. Alibaba Group Holding's value of 0.67 is 86.1% above this benchmark. Historically, Alibaba Group Holding's own Cash Ratio has ranged from 0.67 to 1.61 over the past decade. While the company's 10-year median is 1.32 vs. the industry median of 0.36, Alibaba Group Holding has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Retail - Cyclical company?
The median Cash Ratio among Retail - Cyclical companies is 0.36, based on 1,107 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alibaba Group Holding's current Cash Ratio of 0.67 is 86.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Alibaba Group Holding and its competitors. For the Retail - Cyclical industry, the median Cash Ratio is 0.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alibaba Group Holding's current Cash Ratio is 0.67, which is 49% below median its own 10-year median of 1.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alibaba Group Holding stock overvalued right now?
Based on GuruFocus' analysis, Alibaba Group Holding (BABA) is currently considered Fairly Valued. The stock's GF Value™ is $103.22, compared to a current price of $108.98 — trading 5.6% above its estimated fair value. The current Cash Ratio is 0.67, which is 49% below median its 10-year median of 1.32 and 86.1% above the Retail - Cyclical industry median of 0.36. Alibaba Group Holding's overall GF Score™ is 87/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Alibaba Group Holding (BABA), the current Cash Ratio is 0.67 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alibaba Group Holding (BABA) Overvalued in 2026?
Based on GuruFocus' analysis, Alibaba Group Holding stock appears to be overvalued.
The current stock price of $108.98 is trading 5.6% above its estimated GF Value™ of $103.22.
GuruFocus considers Alibaba Group Holding to be Fairly Valued.
Key valuation signals for BABA:
Cash Ratio: 0.67 (49% below median its 10-year median of 1.32)
GF Value™: $103.22 vs. price of $108.98 (5.6% above fair value)
Industry Position: 86.1% above the Retail - Cyclical median (#349 of 1107)
No single metric tells the full story. See the BABA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alibaba is the world's largest online and mobile commerce company as measured by gross merchandise volume. It operates China's online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer). The China retail e-commerce platform is the most valuable cash flow-generating business at Alibaba. Additional revenue sources include China wholesale e-commerce, international retail and wholesale e-commerce, local consumer services, travel services, cloud computing, digital media and entertainment, Cainiao logistics services, and other businesses.
87GF Score
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