The business behind the dividend
| Measure | BABA | Median | Formula |
|---|---|---|---|
| Return on equity | 9.8% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 4.5% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | — | — | Operating cash flow − capital expenditure |
| Operating margin | 4.9% | 15.0% | Operating income ÷ revenue |
| Net margin | 10.1% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.05x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 5.12x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 1.28x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 0.42x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 0.74x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Free cash flow, Owner earnings — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 9.8% | 12.9% | 8.1% | 7.4% | 6.6% | 16.1% | 19.8% | 17.9% | 17.5% | 15.7% | 12.9% |
| Return on capital employed | 4.5% | 13.5% | — | — | — | — | — | — | 18.6% | 16.9% | 16.9% |
| Operating margin | 4.9% | 14.1% | 12.0% | 11.6% | 8.2% | 12.5% | 17.9% | 15.1% | 27.7% | 30.4% | 12.5% |
| Net margin | 10.1% | 13.1% | 8.5% | 8.4% | 7.3% | 21.0% | 29.3% | 23.3% | 25.6% | 27.6% | 13.1% |
| Debt to equity | 0.05x | 0.04x | — | — | — | — | — | — | 0.02x | 0.02x | 0.04x |
| Current ratio | 1.28x | 1.55x | 1.79x | 1.81x | 1.66x | 1.70x | 1.91x | 1.30x | 1.89x | 1.95x | 1.70x |
| Cash conversion | 0.74x | 1.26x | 2.28x | 2.74x | 2.29x | 1.54x | 1.21x | 1.72x | 1.95x | 1.84x | 1.72x |