Alibaba Group Holding Limited
BABA Consumer Cyclical Internet Retail
Alibaba Group Holding Limited’s revenue for fiscal 2026 (year ended March 2026) was $148.4 billion, up 8.09% from fiscal 2025. In the quarter to June 2026, revenue grew 14.7%, EPS fell 74.1%, free cash flow grew 17.2% and total debt rose 21.2%, each against the same quarter a year earlier. Revenue growth for three consecutive years; insiders bought in the last twelve months.
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Alibaba Group Holding Limited (BABA) Altman Z-score
Alibaba Group Holding Limited's Altman Z-score for fiscal 2026 is 2.77, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | 2.77 | (0.58) |
| FY2025 | 3.34 | 0.69 |
| FY2024 | 2.66 | (0.45) |
| FY2023 | 3.11 | (0.02) |
| FY2022 | 3.12 | (2.04) |
| FY2021 | 5.16 | (1.00) |
| FY2020 | 6.16 | (0.19) |
| FY2019 | 6.35 | (1.14) |
| FY2018 | 7.49 | 0.38 |
| FY2017 | 7.11 | (0.54) |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.07 | — | 0.08 | |
| Retained earnings / total assets | 0.37 | — | 0.52 | |
| EBIT / total assets | 0.03 | — | 0.10 | |
| Market value of equity / total liabilities | 2.54 | — | 1.52 | |
| Sales / total assets | 0.54 | — | 0.54 | |
| Altman Z-score | Grey zone | 2.77 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 3.37 | ||
Z and Z″ put Alibaba Group Holding Limited in different zones: grey zone by Z, safe zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| DASH DoorDash, Inc. compare | 6.7× |
| EBAY eBay Inc. compare | 6.1× |
| PDD PDD Holdings Inc. Sponsored ADR compare | 5.5× |
| AMZN Amazon.com, Inc. compare | 5.3× |
| SE Sea Limited Sponsored ADR compare | 3.8× |
| CPNG Coupang, Inc. compare | 3.7× |
| MELI MercadoLibre, Inc. compare | 3.0× |
| BABA Alibaba Group Holding Limited | 2.8× |
| JD JD.com, Inc. compare | 2.6× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets