Please comment on Alibaba current Revenue, Profit Margin, Earning ,EBITDA and Price/Earning ratio affect the profitability...

Please comment on Alibaba current Revenue, Profit Margin, Earning ,EBITDA and Price/Earning ratio affect the profitability of the company

Expert Solution

Alibaba is a Chinese E-Commerce player which has a market expanded to entire American market along with European Markets and other Asian subcontinent so it is having a global presence.

The revenues of Alibaba is almost consolidated 72 billion dollars and it is is one of the largest business to business platform in the world.

Profit margin of Alibaba is around 50% which is is reflecting that this company is operating at a very high profit margin and it is having a higher operating profit margin as well.

price to earning ratio of Alibaba is around 40 which is in line with the electronic commerce industry but it is way below the likes of Amazon which has a price to earning ratio of 123.

It can be overall interpreted that Alibaba has been able to generate a higher amount of sales which had led into a better management of its cost and profit margins which is reflecting upon the profitability of the company because the profitability of the company is also around 20 billion dollars which is reflecting that these sales are translating into profit and company is not incurring a lot of cost when the management of cost is very sound.

hence this company to effectively managing its operation in order to maximize its profits.

jeff jeffy answered 1 year ago

Looking at Price/Earning Ratio Why is Alibaba undervalued and how will it realize its value?

Operating Profit Margin Return on Total Assets Current Ratio Working Capital Long-term debt-to-capital ratio Price-Earnings Ratio...

Operating Profit Margin Return on Total Assets Current Ratio Working Capital Long-term debt-to-capital ratio Price-Earnings Ratio Which measure do you feel is the most important and why?

Create a chart on American Apparel: 1 Calculate the current ratio, debt ratio, profit margin, and...

Create a chart on American Apparel: 1 Calculate the current ratio, debt ratio, profit margin, and inventory turnover of the company. • 2 Explain what each calculated ratio tells you about how well (or poorly) the company is performing.

Compute amazon Profitability and Price/earnings/ ratio. Please explain what the ratio means, why the ratio is...

Compute amazon Profitability and Price/earnings/ ratio. Please explain what the ratio means, why the ratio is important, and relate the result to some context that makes it meaningful (competition, industry, year over year)

Calculate the following measurements: working capital, current ratio, profitability rate/percentage, and net income percentage. Comment with...

Calculate the following measurements: working capital, current ratio, profitability rate/percentage, and net income percentage. Comment with 2-3 sentences about how your business is performing after one month of operations. You opened a new pet supplies store and named it Ozzie’s Pet Supply and Boarding on December 1, 2019. The following information about December’s transactions, accounts, and adjustment data is available. Transactions: Dec. 1 Family members contributed $50,000 cash to the business in exchange for capital. Dec. 2 Purchased $10,800 of...

what is alibaba target price and how it can be achieved with the PE Ratio

Compute Financial ratios Current Ratio, Quick Ratio, Reeivables turnover, Inventory turnover, Profit margin, Asset turnover, Return...

Compute Financial ratios Current Ratio, Quick Ratio, Reeivables turnover, Inventory turnover, Profit margin, Asset turnover, Return on assets, Return on equity, Earnings per Share, Price-earnings, Cash Dicidend payot, Debt Ratio, Debt-to-Equity, and Times Interest earned Orange Company Income Statement For the Years Ended December 31 2013 2012 Net sales (all on account) $ 600,000 $ 520,000 Expenses: Cost of Goods Sold $ 415,000 $ 354,000 Selling and administrative $ 120,800 $ 114,600 Interest Expense $ 7,800 $ 6,000 Income Tax...

1. The profit margin ratio is the only ratio that makes up ROE that can be...

1. The profit margin ratio is the only ratio that makes up ROE that can be negative (except in relatively rare cases). Describe how the interpretation of the Asset Turnover Ratio and the Financial Leverage Ratio change based on whether the Profit Margin Ratio is positive or negative.

Can you explain why the current PE ratio for Alibaba is the best for the market?...

Can you explain why the current PE ratio for Alibaba is the best for the market? Do you think its undervalued compared to amazon ? Please give detailed reasons

Comment on the liquidity position of Microsoft using current ratio, quick ratio, and cash ratio for...

Comment on the liquidity position of Microsoft using current ratio, quick ratio, and cash ratio for 2020 only

Question