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Alibaba Group Holding Gross Margin %

: 41.98% (As of Sep. 2020)
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Gross Margin % is calculated as gross profit divided by its revenue. Alibaba Group Holding's Gross Profit for the three months ended in Sep. 2020 was $9,558 Mil. Alibaba Group Holding's Revenue for the three months ended in Sep. 2020 was $22,767 Mil. Therefore, Alibaba Group Holding's Gross Margin % for the quarter that ended in Sep. 2020 was 41.98%.

Warning Sign:

Alibaba Group Holding Ltd gross margin has been in long term decline. The average rate of decline per year is -9.2%.


NYSE:BABA' s Gross Margin % Range Over the Past 10 Years
Min: 43.31   Med: 66.65   Max: 80.36
Current: 43.31

43.31
80.36

During the past 13 years, the highest Gross Margin % of Alibaba Group Holding was 80.36%. The lowest was 43.31%. And the median was 66.65%.

NYSE:BABA's Gross Margin % is ranked higher than
66% of the 1016 Companies
in the Retail - Cyclical industry.

( Industry Median: 34.85 vs. NYSE:BABA: 43.31 )

Alibaba Group Holding had a gross margin of 41.98% for the quarter that ended in Sep. 2020 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Alibaba Group Holding was -9.20% per year.


Alibaba Group Holding Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Alibaba Group Holding Annual Data
Dec11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 66.03 62.42 57.23 45.09 44.60

Alibaba Group Holding Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 44.93 47.77 36.58 45.03 41.98

Competitive Comparison
* 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.


Alibaba Group Holding Gross Margin % Distribution

* The bar in red indicates where Alibaba Group Holding's Gross Margin % falls into.



Alibaba Group Holding Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Alibaba Group Holding's Gross Margin for the fiscal year that ended in Mar. 2020 is calculated as

Gross Margin % (A: Mar. 2020 )=Gross Profit (A: Mar. 2020 ) / Revenue (A: Mar. 2020 )
=32382.9 / 72603.233387935
=(Revenue - Cost of Goods Sold) / Revenue
=(72603.233387935 - 40220.354675593) / 72603.233387935
=44.60 %

Alibaba Group Holding's Gross Margin for the quarter that ended in Sep. 2020 is calculated as


Gross Margin % (Q: Sep. 2020 )=Gross Profit (Q: Sep. 2020 ) / Revenue (Q: Sep. 2020 )
=9558.5 / 22767.303908613
=(Revenue - Cost of Goods Sold) / Revenue
=(22767.303908613 - 13208.821542889) / 22767.303908613
=41.98 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Alibaba Group Holding  (NYSE:BABA) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Alibaba Group Holding had a gross margin of 41.98% for the quarter that ended in Sep. 2020 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Alibaba Group Holding Gross Margin % Related Terms


Alibaba Group Holding Gross Margin % Headlines

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