BABA Current Ratio Analysis
Higher than 38% of Consumer Cyclical sector peers
Updated 378h ago·SEC filings & market data
Key Takeaway
The current ratio of 1.28x means BABA has $1.28 in current assets—like cash, inventory, and receivables—for every $1 of current liabilities due within a year, so it can cover short-term obligations with a small cushion.
Sector Performance
38th percentileBABA
1.28x
Sector Median
1.45x
Sector Avg
3.36x
Deep Analysis
The current ratio of 1.28x means BABA has $1.28 in current assets—like cash, inventory, and receivables—for every $1 of current liabilities due within a year, so it can cover short-term obligations with a small cushion.
This sits below the sector median of 1.44x, placing BABA at the 41th percentile among Consumer Cyclical peers, meaning most peers hold a larger liquidity buffer. The trend is N/A, with both the year-over-year change and quarter-over-quarter change reported as N/A, so there is no historical data to show whether liquidity is improving or deteriorating. Because the level is modestly below the peer median but not extreme, and the trend is unknown, the investment risk is neutral: there is no clear signal of distress, but also no evidence of strengthening liquidity. This metric neither supports nor contradicts the overall NEUTRAL verdict—it is consistent with a stock that has adequate, if slightly below-average, short-term financial flexibility.
Frequently Asked Questions
What does the Current Ratio tell investors about BABA?
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
How is the Current Ratio calculated?
Current Ratio is calculated as: Current Assets / Current Liabilities.
How does BABA's Current Ratio compare to its sector?
BABA's Current Ratio of 1.28x compares to a Consumer Cyclical sector median of 1.45x, placing it in the 38th percentile.
Who are BABA's closest peers by Current Ratio?
The closest Consumer Cyclical peers by Current Ratio include: URBN (1.48x), ROST (1.54x), AEO (1.55x), SE (1.58x), PVH (1.68x).
Learn More About Current Ratio
The Formula
Current Assets / Current Liabilities
Why It Matters
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
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1.28x
Sector Median
1.45x
Sector Avg
3.36x
How BABA's Current Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.