GURUFOCUS.COM » STOCK LIST » USA » NYSE » Alibaba Group Holding Ltd (NYSE:BABA) » Definitions » Profitability Rank
Switch to:

Alibaba Group Holding Profitability Rank

: 9 (As of Jun. 2022)
View and export this data going back to 2014. Start your Free Trial

Alibaba Group Holding has the Profitability Rank of 9. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Alibaba Group Holding's Operating Margin % for the quarter that ended in Jun. 2022 was 12.13%. As of today, Alibaba Group Holding's Piotroski F-Score is 5.


Competitive Comparison

For the Internet Retail subindustry, Alibaba Group Holding's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank Distribution

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

* The bar in red indicates where Alibaba Group Holding's Profitability Rank falls into.



Alibaba Group Holding Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Alibaba Group Holding has the Profitability Rank of 9. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Alibaba Group Holding's Operating Margin % for the quarter that ended in Jun. 2022 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=3725.5048392878 / 30701.846098698
=12.13 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Alibaba Group Holding has an F-score of 5 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Alibaba Group Holding Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -18.9%.

4. Consistency of the profitability

5. Predictability Rank


Alibaba Group Holding Profitability Rank Related Terms

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


Alibaba Group Holding Business Description

Alibaba Group Holding logo
Address
969 West Wen Yi Road, Yu Hang District, Hangzhou, CHN, 311121
Alibaba is the world's largest online and mobile commerce company as measured by gross merchandise volume (CNY 7.5 trillion for the fiscal year ended March 2021). It operates China's online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer). Alibaba's China commerce retail division accounted for 63% of revenue in the September 2021 quarter. Additional revenue sources include China commerce wholesale (2%), international retail/wholesale marketplaces (5%/2%), cloud computing (10%), digital media and entertainment platforms (4%), Cainiao logistics services (5%), and innovation initiatives/other (1%).

Alibaba Group Holding Headlines

From GuruFocus

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)