Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Alibaba Group Holding's
Operating Income
for the
three
months ended in Mar. 2026 was MXN-2,219 Mil. Alibaba Group Holding's Interest Expense for the
three
months ended in Mar. 2026 was MXN-5,863 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Alibaba Group Holding's Interest Coverage or its related term are showing as below:
MEX:9988N'
s Interest Coverage Range Over the Past 10 Years
Min: 4.6 Med: 13.17 Max: 20.04
Current: 6.03
MEX:9988N's Interest Coverage is ranked worse than 57% of 828
companies
in the Retail - Cyclical industry
Industry Median: 7.915
vs MEX:9988N: 6.03
Alibaba Group Holding (MEX:9988N) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Alibaba Group Holding Interest Coverage Related Terms
Alibaba Group Holding Interest Coverage Historical Data
* Premium members only.
The historical data trend for Alibaba Group Holding's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:9988N vs PDD, MELI, DASH: Interest Coverage Comparison
For the Internet Retail subindustry, Alibaba Group Holding's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Alibaba Group Holding's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Alibaba Group Holding's Interest Coverage falls into.
Alibaba Group Holding Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Alibaba Group Holding did not have earnings to cover the interest expense.
* 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.
What does a Interest Coverage of 0 (At Loss) mean?
Alibaba Group Holding (MEX:9988N) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Alibaba Group Holding and its competitors. Over the past decade, Alibaba Group Holding's Interest Coverage has ranged from 4.60 to 20.04. According to the industry distribution chart, Alibaba Group Holding ranks #472 out of 828 companies in the Retail - Cyclical industry, placing it in the top 57%.
Is Alibaba Group Holding's Interest Coverage too high?
Alibaba Group Holding's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 4.60 to a high of 20.04. Based on the distribution chart, Alibaba Group Holding ranks #472 out of 828 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Alibaba Group Holding has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alibaba Group Holding's Interest Coverage compare to PDD and MELI?
According to the Retail - Cyclical industry distribution chart, Alibaba Group Holding ranks #472 out of 828 companies for Interest Coverage. This places Alibaba Group Holding in the lower half of its industry. The industry median Interest Coverage is 7.92. Historically, Alibaba Group Holding's own Interest Coverage has ranged from 4.60 to 20.04 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.92, based on 828 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Alibaba Group Holding and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alibaba Group Holding's current Interest Coverage is 0 (At Loss). 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 (MEX:9988N) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN279.27, compared to a current price of MXN223.22 — trading 20.1% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Alibaba Group Holding's overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Alibaba Group Holding (MEX:9988N), the current Interest Coverage is 0 (At Loss) 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 (MEX:9988N) Overvalued in 2026?
Based on GuruFocus' analysis, Alibaba Group Holding stock appears to be undervalued.
The current stock price of MXN223.22 is trading 20.1% below its estimated GF Value™ of MXN279.27.
GuruFocus considers Alibaba Group Holding to be Modestly Undervalued.
Key valuation signals for MEX:9988N:
Interest Coverage: 0 (At Loss)
GF Value™: MXN279.27 vs. price of MXN223.22 (20.1% below fair value)
No single metric tells the full story. See the MEX:9988N 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.
79GF Score
Get the complete analysis for MEX:9988N
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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