Alibaba Group Operating Margin vs. Total Debt
| BABA34 Stock | BRL 19.03 0.41 2.11% |
For Alibaba Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alibaba Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alibaba Group Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alibaba Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alibaba Group Holding over time as well as its relative position and ranking within its peers.
Alibaba |
Alibaba Group Holding Total Debt vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Alibaba Group's current stock value. Our valuation model uses many indicators to compare Alibaba Group value to that of its competitors to determine the firm's financial worth. Alibaba Group Holding is number one stock in operating margin category among its peers. It also is the top company in total debt category among its peers making up about 1,130,571,672,355 of Total Debt per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Alibaba Group by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Alibaba Group's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Alibaba Total Debt vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Alibaba Group |
| = | 0.12 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Alibaba Group |
| = | 132.5 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Alibaba Total Debt vs Competition
Alibaba Group Holding is the top company in total debt category among its peers. Total debt of Internet Retail industry is currently estimated at about 427.33 Billion. Alibaba Group totals roughly 132.5 Billion in total debt claiming about 31% of equities under Internet Retail industry.
Alibaba Group Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Alibaba Group, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alibaba Group will eventually generate negative long term returns. The profitability progress is the general direction of Alibaba Group's change in net profit over the period of time. It can combine multiple indicators of Alibaba Group, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the Peoples Republic of China and internationally. The company was incorporated in 1999 and is based in Hangzhou, the Peoples Republic of China. ALIBABAGR DRN operates under Internet Retail classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 245700 people.
Alibaba Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Alibaba Group. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Alibaba Group position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Alibaba Group's important profitability drivers and their relationship over time.
Use Alibaba Group in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Alibaba Group position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alibaba Group will appreciate offsetting losses from the drop in the long position's value.Alibaba Group Pair Trading
Alibaba Group Holding Pair Trading Analysis
The ability to find closely correlated positions to Alibaba Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alibaba Group when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Alibaba Group - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Alibaba Group Holding to buy it.
The correlation of Alibaba Group is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alibaba Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alibaba Group Holding moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Alibaba Group can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Alibaba Group position
In addition to having Alibaba Group in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Online Gaming Thematic Idea Now
Online Gaming
Companies that are involved in the building and marketing of online gaming-related products. The Online Gaming theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Online Gaming Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Alibaba Stock
When determining whether Alibaba Group Holding offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Alibaba Group's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Alibaba Group Holding Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Alibaba Group Holding Stock:Check out Trending Equities. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
To fully project Alibaba Group's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Alibaba Group Holding at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Alibaba Group's income statement, its balance sheet, and the statement of cash flows.