Alibaba Group Holding Limited (BABAF)

Business Services · Price $15.45
Updated: Aug 24, 2026
Operating Income (TTM)
$7.3B
Trailing 12 Months
Growth Rate
N/A
Log-Linear Regression (0Q)
Operating Margin
N/A
Operational Efficiency
EV/Operating Income
44.5x
Valuation Multiple
Net Income
$15.0B
After Interest & Taxes

🧮 BABAF Operating Income Breakdown

Operating Income = Gross Profit - Operating Expenses (SG&A, R&D, etc.)
Revenue (Top Line) $148.4B
Less: Cost of Revenue → Gross Profit $59.1B
Equals: Operating Income (EBIT) $7.3B
Then: Less Interest & Taxes → Net Income $15.0B

Understanding Operating Income

Operating Income, also known as EBIT (Earnings Before Interest and Taxes), measures a company's profit from its core business operations before financing costs and taxes. For BABAF, the trailing twelve month operating income is $7.3B.

Why Operating Income Matters

Operating income isolates business performance from capital structure decisions (debt vs equity financing) and tax strategies. This makes it ideal for comparing companies with different debt levels or tax situations. It shows how efficiently management runs the core operations.

BABAF's operating income growth rate of N/A (based on log-linear regression of 0 quarters) indicates relatively flat or slightly declining operational performance.

Operating Income vs Other Profitability Metrics

Net Income: $15.0B →

The bottom line after interest and taxes. Net income shows the final profit, while operating income excludes financing decisions.

Free Cash Flow: $7.4B →

Actual cash generated after capital expenditures. FCF can differ significantly from operating income due to working capital and capex.

Owner Earnings: N/A →

Buffett's measure of true cash generation. Adds back depreciation and subtracts only maintenance capex.

Revenue: $148.4B →

The top line that operating income is derived from. Operating margin shows what percentage becomes operational profit.

Operating Margin Analysis

BABAF's operating margin of N/A shows what percentage of revenue converts to operating profit after all operating expenses.

EV/Operating Income Valuation

The EV/Operating Income ratio of 44.5x shows how the market values BABAF's operational earnings. Ratios above 25x indicate high growth expectations or premium valuation.

Summary: BABAF Operating Income Trend

Alibaba Group Holding Limited (BABAF) generated $7.3B in trailing twelve-month operating income, growing at N/A annually — a negative trend — revenue erosion that warrants monitoring. For complete financial analysis, view the full BABAF stock report on Zyberno.

Frequently Asked Questions

What is BABAF's current operating income?

Alibaba Group Holding Limited's TTM operating income is $7.3B, growing at N/A annually — a negative trend — revenue erosion that warrants monitoring.

Is BABAF's operating income growing?

Alibaba Group Holding Limited (BABAF) generated $7.3B in trailing twelve-month operating income, growing at N/A annually — a negative trend — revenue erosion that warrants monitoring.

What is BABAF's operating margin?

Alibaba Group Holding Limited (BABAF) generated $7.3B in trailing twelve-month operating income, growing at N/A annually — a negative trend — revenue erosion that warrants monitoring.

What is the difference between operating income and EBIT?

Operating income and EBIT (Earnings Before Interest and Taxes) are generally the same metric - both measure profit from core operations before financing costs and taxes. BABAF's EBIT/Operating Income is $7.3B.

How does operating income differ from net income?

Operating income excludes interest expense and income taxes, while net income includes them. BABAF's operating income is $7.3B versus net income of $15.0B. The difference reflects financing costs and tax burden.

📊 Valuation Trilogy
Three interconnected metrics built on Owner Earnings
💎
Intrinsic Value
DCF Fair Value
🛡️
Margin of Safety
Valuation Gap
🎯
Expected Return
Projected Annual
Click any metric for full methodology and detailed analysis

📊 Full BABAF Stock Report

See BABAF's intrinsic value, margin of safety, DCF valuation, and complete financial analysis with 250+ metrics.

💵 BABAF Free Cash Flow

Compare to Free Cash Flow which subtracts all capital expenditures, not just maintenance CapEx.

💰 BABAF Owner Earnings

Compare to Buffett's Owner Earnings metric which uses maintenance CapEx instead of total capital expenditures.

📈 BABAF Earnings Per Share

Analyze EPS trends, P/E ratio, earnings yield, and per-share profitability metrics.

🎯 BABAF Earnings Surprise (SUE)

See whether BABAF is beating or missing its own earnings trend — Standardized Unexpected Earnings and post-earnings drift.

📊 BABAF Revenue

Analyze revenue trends, growth rate, P/S ratio, and top-line sales performance.

💰 BABAF Net Income

Analyze the bottom-line profit, P/E ratio, and net profit margin trends.

🔶 BABAF Operating Income

Analyze EBIT, operating margin, and core business profitability before interest and taxes.

💜 BABAF Gross Profit

Analyze gross margin, pricing power, and profitability before operating expenses.

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