BABA Current Ratio Analysis
Higher than 41% of Consumer Cyclical sector peers
Updated 48h ago·SEC filings & market data
Key Takeaway
The current ratio of 1.28x means BABA has $1.28 in current assets for every $1 of current liabilities due within a year, indicating it can cover short-term obligations but with a thinner cushion than ideal.
Sector Performance
41th percentileBABA
1.28x
Sector Median
1.44x
Sector Avg
2.73x
Deep Analysis
The current ratio of 1.28x means BABA has $1.28 in current assets for every $1 of current liabilities due within a year, indicating it can cover short-term obligations but with a thinner cushion than ideal.
This is below the Consumer Cyclical sector median of 1.44x, placing BABA at the 41st percentile among its peers — meaning 59% of sector companies have a higher ratio. The metric shows no trend data because the year-over-year change, quarter-over-quarter change, and last eight quarters of values are all listed as N/A, so no direction can be inferred. Without a trend, the combination of a below-median current ratio suggests a modest liquidity risk, but the absence of deterioration or improvement leaves the outlook neutral on this measure alone. This metric neither supports nor contradicts the overall NEUTRAL verdict, as the ratio is slightly below the median but not critically low, and the lack of trend prevents any strong signal.
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 1.44x, placing it in the 41th percentile.
Who are BABA's closest peers by Current Ratio?
The closest Consumer Cyclical peers by Current Ratio include: URBN (1.48x), SG (1.61x), MELI (1.16x), XPEV (1.14x), BBY (1.12x).
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.
Master BABA's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full BABA research report →BABA
1.28x
Sector Median
1.44x
Sector Avg
2.73x
How BABA's Current Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.