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In: Economics

Write a short business report (400-500 words) about Alibaba Group sources of revenue and their profit...

Write a short business report (400-500 words) about Alibaba Group sources of revenue and their profit for the past 3 years.

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Expert Solution

Annual / quarterly sales data and growth rate for Alibaba from 2011 through 2019. Revenue can be described as the amount of money that a business receives from its clients in return for selling products or services. Revenue is the top line item on a statement of income from which all taxes and expenditures are subtracted to get to net profit.
Revenue from Alibaba for the quarter ending December 31, 2019 was $23,192B, a year-over-year 35.97 per cent rise.
Revenue from Alibaba for the twelve months ended December 31, 2019 was $71,052B, a year-over-year 33.72 per cent rise.Alibaba's 2019 annual revenue was $56,152B, an rise of 40.74 per cent from 2018.

Alibaba's 2018 annual revenue was $39,898B, an rise of 73.51 per cent from 2017. Alibaba's 2017 annual revenue was $22,994B, an rise of 46.59 per cent from 2016.

China Commerce company, which generates revenue from retail e-commerce and related marketing services in China, is projected to contribute $49 billion to Alibaba's fiscal 2020 revenue (year ending March 2020), accounting for 65 per cent of Alibaba's $75 billion revenue for fiscal 2020. It is estimated that China Wholesale and Other Revenue will be around 12 per cent of total revenues, where wholesale trade and logistics service revenues are mainly driven by Chinese consumption. The China Commerce sector of Alibaba will have $32 billion, which is 62 per cent of $52 billion in overall revenue that the company is projected to add between fiscal 2017 and 2020.

This growth in China Commerce was essential to Alibaba's price appreciation of 145 percent during the same period, further supported by healthy margins, and strong expansion in multiple valuation of Alibaba. Revenue from Alibaba grew 144 percent to $56 billion over 2017-2019 and is projected to rise 78 percent to nearly $100 billion by 2021.


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