What are the key financial ratios and metrics indicating Baba's current health and potential for growth?

Alibaba's (BABA) current health and potential for growth can be assessed through various financial ratios and metrics. Here are the key ones: 1. **Valuation Ratios**: - **Price-to-Earnings (P/E) Ratio**: Alibaba's P/E ratio is 17.92, indicating how much investors are willing to pay for each dollar of earnings. A lower P/E can suggest a stock is undervalued, while a higher P/E may indicate overvaluation. - **Price-to-Sales (P/S) Ratio**: With a P/S ratio of 1.95, this ratio shows how much investors are paying for each dollar of sales. A lower P/S ratio may suggest a good buying opportunity, while a higher ratio could indicate a premium valuation. - **Price-to-Book (P/B) Ratio**: Alibaba's P/B ratio is 2.12, which compares the market's valuation of the company to its book value. A P/B ratio above 1 suggests the market is paying a premium for the company's net assets. |code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code| |---|---|---|---|---|---|---|---| |BABA|BABA.N|Alibaba Group|20240701|15.335408|1.2820589545664214|1.2774541009134792|169| |BABA|BABA.N|Alibaba Group|20240702|15.640979|1.3076050800513184|1.2823313223904342|169| |BABA|BABA.N|Alibaba Group|20240703|16.042193|1.3411470670396055|1.3152250004484944|169| |BABA|BABA.N|Alibaba Group|20240705|15.819296|1.3225126298238905|1.295863754886761|169| |BABA|BABA.N|Alibaba Group|20240708|15.602768|1.304410605100053|1.2781264893206785|169| |BABA|BABA.N|Alibaba Group|20240709|16.06979|1.3434541878377417|1.316383336620073|169| |BABA|BABA.N|Alibaba Group|20240710|16.135597|1.3489557835871433|1.3217740741940784|169| |BABA|BABA.N|Alibaba Group|20240711|16.668427|1.3935009620742336|1.3654216590674784|169| |BABA|BABA.N|Alibaba Group|20240712|16.908306|1.4135551659349554|1.3850717669985313|169| |BABA|BABA.N|Alibaba Group|20240715|16.560163|1.3844499497123148|1.3565530262844372|169| 2. **Return Metrics**: - **Return on Equity (ROE)**: Alibaba's ROE is 12.97%, indicating the company's profitability from its shareholders' equity. A higher ROE is generally preferable. - **Return on Assets (ROA)**: With an ROA of 9.58%, this metric shows how efficiently Alibaba generates profits from its total assets. |code|Ticker|Name|Date|ROA|ROE(Average)|market_code| |---|---|---|---|---|---|---| |BABA|BABA.N|Alibaba Group|2025 Q1|2.0436|2.522|169| |BABA|BABA.N|Alibaba Group|2025 Q2|5.0815|7.0234|169| |BABA|BABA.N|Alibaba Group|2025 Q3|8.2709|11.7814|169| |BABA|BABA.N|Alibaba Group|2025 Q4|9.5833|12.9703|169| 3. **Leverage and Liquidity**: - **Debt-to-Equity Ratio**: Alibaba's debt-to-equity ratio is 0.21%, which is very low and suggests a strong capital structure with minimal debt. - **Free Cash Flow**: Alibaba reported a free cash flow of $3.23 billion, indicating its ability to generate cash after accounting for capital expenditures. |code|Ticker|Name|Date|Debt-to-Equity Ratio|Debt-to-Equity Ratio YoY|market_code| |---|---|---|---|---|---|---| |BABA|BABA.N|Alibaba Group|2025 Q1|0.19740354674565197|36.78014876055124|169| |BABA|BABA.N|Alibaba Group|2025 Q2|0.19119406963751961|34.16126301582141|169| |BABA|BABA.N|Alibaba Group|2025 Q3|0.2114806881653643|45.6082124445579|169| |BABA|BABA.N|Alibaba Group|2025 Q4|0.21163354756326447|37.87843337784025|169| |code|Ticker|Name|Date|Free Cash Flow|Free Cash Flow YoY|market_code| |---|---|---|---|---|---|---| |BABA|BABA.N|Alibaba Group|2025 Q2|3.4992613529097E10|2475.0396065762607|169| |BABA|BABA.N|Alibaba Group|2025 Q3|3.5302625571689E10|824.0677335998176|169| |BABA|BABA.N|Alibaba Group|2025 Q4|2.5163768120994E10|158.8008815701703|169| 4. **Growth Metrics**: - **Revenue Growth Rate**: Alibaba's revenue grew by 6.04%, showing a steady increase in sales. - **Net Income Growth Rate**: The company's net income grew by 1196.29%, which is significant and suggests profitability has increased substantially. - **Diluted EPS Growth Rate**: Alibaba's diluted EPS grew by 304.21%, indicating a strong increase in earnings per share. These ratios and metrics provide a comprehensive view of Alibaba's financial health and growth potential. They indicate that Alibaba is currently in a strong position with robust profitability, low debt, and steady growth, which are positive signs for investors.