Alibaba Group Holding (BABA) Return on Invested Capital (ROIC)

Price: $85.95
Market Cap: $205.80B
Avg Volume: 20.04M
Country: CN
Industry: Specialty Retail
Sector: Consumer Cyclical
Beta: 0.349
52W Range: $66.63-117.82
Website: Alibaba Group Holding

Return on Invested Capital (ROIC) Summary

Alibaba Group Holding's ROIC measures how effectively the company uses its invested capital to generate profits:

  • Annual: 7.62%
  • Quarterly: 2.60%
  • TTM: 6.98%

What is ROIC?

Return on Invested Capital (ROIC) measures how effectively a company uses its capital from debt and equity to generate profits. ROIC is a useful metric for comparing the efficiency of capital allocation between different companies or across time periods within the same company. A higher ROIC indicates a more efficient use of capital.

Related Metrics

Other important metrics to assess Alibaba Group Holding's profitability include:

  • ROE (Return on Equity) - measures the return generated on shareholders' equity:
    • Annual: 8.11%
    • Quarterly: 4.62%
    • TTM: 8.88%
  • ROA (Return on Assets) - measures the return generated on the company's assets:
    • Annual: 4.53%
    • Quarterly: 2.50%
    • TTM: 4.90%

These metrics provide insights into Alibaba Group Holding's profitability and efficiency in using its capital and assets to generate returns. Comparing these ratios with industry benchmarks can offer a deeper understanding of the company's performance.

Annual ROIC

7.62%

Quarterly ROIC

2.60%

TTM ROIC

6.98%

Alibaba Group Holding Historical ROIC
17.16%17.16%13.73%13.73%10.29%10.29%6.86%6.86%3.43%3.43%0.00%0.00%ROIC201620162017201720182018201920192020202020212021202220222023202320242024
Historical ROE
32.93%32.93%26.35%26.35%19.76%19.76%13.17%13.17%6.59%6.59%0.00%0.00%ROE201620162017201720182018201920192020202020212021202220222023202320242024
Historical ROA
19.61%19.61%15.69%15.69%11.76%11.76%7.84%7.84%3.92%3.92%0.00%0.00%ROA201620162017201720182018201920192020202020212021202220222023202320242024

Alibaba Group Holding Historical Profitability Metrics

The table below shows various profitability metrics for each year, with the latest data available for the last fiscal year 2024.

Year ROIC ROE ROA
2024 7.62% 8.11% 4.53%
2023 7.20% 7.35% 4.15%
2022 5.31% 6.56% 3.67%
2021 12.88% 16.06% 8.91%
2020 17.16% 19.78% 11.38%
2019 7.54% 17.85% 9.11%
2018 11.55% 17.52% 8.94%
2017 9.99% 15.67% 8.62%
2016 9.49% 32.93% 19.61%
2015 9.36% 16.68% 9.50%