BABANEUTRAL

BABA Quick Ratio Analysis

0.35x

Higher than 21% of Consumer Cyclical sector peers

Updated 49h ago·SEC filings & market data

Key Takeaway

The current Quick Ratio of 0.35x means that for every dollar of short-term liabilities, BABA has only $0.35 in highly liquid assets like cash and receivables, indicating limited ability to cover immediate obligations.

Sector Performance

21th percentile

BABA

0.35x

Sector Median

0.70x

Sector Avg

1.86x

Prior Period

0.75x(May 2026)

↓ Declining

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Deep Analysis

Among Consumer Cyclical peers, this ratio is well below the sector median of 0.70x, placing BABA in the 21st percentile — meaning 79% of peers have a higher Quick Ratio. Trend data for this metric is not available: the year-over-year change is N/A and the quarter-over-quarter change is N/A, offering no insight into whether liquidity is improving or worsening. The combination of a low Quick Ratio and no trend data suggests potential liquidity risk but lacks directional context, making it harder to assess whether this risk is growing or easing. This metric directly supports the overall NEUTRAL verdict — the weak liquidity position is a clear concern, but without trend confirmation and given other factors, it does not tip the stock to a bearish stance.

Frequently Asked Questions

What does the Quick Ratio tell investors about BABA?

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.

How is the Quick Ratio calculated?

Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.

How does BABA's Quick Ratio compare to its sector?

BABA's Quick Ratio of 0.35x compares to a Consumer Cyclical sector median of 0.70x, placing it in the 21th percentile.

Who are BABA's closest peers by Quick Ratio?

The closest Consumer Cyclical peers by Quick Ratio include: ABNB (0.75x), AMCR (0.75x), ANF (0.78x), ROST (0.88x), CROX (0.90x).

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Learn More About Quick Ratio

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The Formula

(Cash + Receivables) / Current Liabilities

Why It Matters

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.