BABANEUTRAL

BABA Debt-to-Equity Ratio Analysis

0.25x

Higher than 29% of Consumer Cyclical sector peers

Updated 50h ago·SEC filings & market data

Key Takeaway

The debt-to-equity ratio measures how much debt a company uses relative to its shareholders' equity.

Sector Performance

29th percentile

BABA

0.25x

Sector Median

0.47x

Sector Avg

1.52x

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Deep Analysis

The debt-to-equity ratio measures how much debt a company uses relative to its shareholders' equity.

At 0.25x, BABA has $0.25 of debt for every $1 of equity, indicating a low reliance on borrowing. This is well below the Consumer Cyclical sector median of 0.47x, placing BABA in the 29th percentile among peers, meaning 71% of sector companies carry more debt. The year-over-year change and quarter-over-quarter change are both N/A, and no trend over the last eight quarters is available—so there is no directional data to assess. Because the metric is both low and lacks a trend, it implies a stable, conservative capital structure that poses limited leverage risk, but also offers no immediate sign of growth or change. This measured level of debt neither raises nor lowers concerns, which aligns with the overall NEUTRAL verdict by failing to provide a compelling reason to be bullish or bearish.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about BABA?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

How does BABA's Debt-to-Equity Ratio compare to its sector?

BABA's Debt-to-Equity Ratio of 0.25x compares to a Consumer Cyclical sector median of 0.47x, placing it in the 29th percentile.

Who are BABA's closest peers by Debt-to-Equity Ratio?

The closest Consumer Cyclical peers by Debt-to-Equity Ratio include: BBY (0.38x), PHM (0.18x), LI (0.14x), YETI (0.11x), TSLA (0.11x).

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Learn More About Debt-to-Equity Ratio

How to Spot a Debt Problem Before It Hits the Stock Price

Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.

Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.