Alibaba Group Holding (BUE:BABA) Gross Margin %

: 40.00% (As of Dec. 2023)

View and export this data going back to 2019. Start your Free Trial

Gross Margin % is calculated as gross profit divided by its revenue. Alibaba Group Holding's Gross Profit for the three months ended in Dec. 2023 was ARS5,264,891 Mil. Alibaba Group Holding's Revenue for the three months ended in Dec. 2023 was ARS13,162,885 Mil. Therefore, Alibaba Group Holding's Gross Margin % for the quarter that ended in Dec. 2023 was 40.00%.

Warning Sign:

Alibaba Group Holding Ltd gross margin has been in long-term decline. The average rate of decline per year is -8%.

The historical rank and industry rank for Alibaba Group Holding's Gross Margin % or its related term are showing as below:

BUE:BABA' s Gross Margin % Range Over the Past 10 Years
Min: 36.72 Med: 51.16 Max: 74.54
Current: 37.75

During the past 13 years, the highest Gross Margin % of Alibaba Group Holding was 74.54%. The lowest was 36.72%. And the median was 51.16%.

BUE:BABA's Gross Margin % is ranked better than
51.92% of 1096 companies
in the Retail - Cyclical industry
Industry Median: 36.74 vs BUE:BABA: 37.75

Alibaba Group Holding had a gross margin of 40.00% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Alibaba Group Holding was -8.00% per year.

Alibaba Group Holding Gross Margin % Historical Data

The historical data trend for Alibaba Group Holding's Gross Margin % can be seen below:

* 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.

* Premium members only.

Alibaba Group Holding Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

Get a 7-Day Free Trial

45.09

44.60

41.28

36.76

36.72

Alibaba Group Holding Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															39.45	33.32	39.21	37.87	40.00

Competitive Comparison

For the Internet Retail subindustry, Alibaba Group Holding's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Alibaba Group Holding's Gross Margin % distribution charts can be found below:

* 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. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	9144940.5	/	24903730.929
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(24903730.929 - 15758790.419)	/	24903730.929
	=	36.72 %

Alibaba Group Holding's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	5264890.9	/	13162884.513
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(13162884.513 - 7897993.614)	/	13162884.513
	=	40.00 %

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 (BUE: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 40.00% for the quarter that ended in Dec. 2023 => Competition eroding margins

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

Thank you for viewing the detailed overview of Alibaba Group Holding's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Alibaba Group Holding (BUE:BABA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Alibaba Group Holding Ltd (BUE:BABA) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

BABAF:USA BABA:USA BABA:Mexico 09988:Hong Kong 0HCI:UK AHLAd:UK AHLA:Germany BABA34:Brazil AHLA:Austria

Address

1 Matheson Street, Causeway Bay, 26th Floor, Tower One, Times Square, Hong Kong, HKG

Website

https://www.alibabagroup.com

Alibaba is the world's largest online and mobile commerce company as measured by gross merchandise volume (CNY 8.3 trillion for the fiscal year ended March 2022). It operates China's online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer). Alibaba's China commerce retail division accounted for 67% of revenue in the year ended March 2022. Additional revenue sources include China commerce wholesale (2%), international commerce retail/wholesale (5%/2%), local consumer services (5%), cloud computing (9%), digital media and entertainment platforms (4%), Cainiao logistics services (5%), and innovation initiatives/other (1%).