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Alibaba Group Holding Limited (BABA) Return on Invested Capital (ROIC): 3.17%

Is Alibaba Group Holding Limited’s return on invested capital (ROIC) high or low?

Alibaba Group Holding Limited's return on invested capital (ROIC) of 3.17% is 41% below its 5-year average of 5.34%, near the low end of its 5-year range (3.17%–7.87%).

The return on invested capital (ROIC) for Alibaba Group Holding Limited (BABA) is 3.17% as of Tuesday, June 9, 2026. It is below its 12-month average by 42.57% (5.52%).

BABA Return on Invested Capital (ROIC) Chart

BABA Return on Invested Capital (ROIC)
3.17%-59.72% 1Y
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BABA Average Return on Invested Capital (ROIC) Chart

BABA Current vs Average Return on Invested Capital (ROIC) Chart

BABA Return on Invested Capital (ROIC) Metrics

RETURN ON INVESTED CAPITAL (ROIC)

3.17%

RETURN ON INVESTED CAPITAL (ROIC) AVG TTM

5.52%

RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y

5.79%

RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y

5.34%

RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y

6.48%

RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y

9.64%

RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y

16.54%

CURRENT VS TTM AVG

-42.57%

CURRENT VS 3Y AVG

-45.20%

CURRENT VS 5Y AVG

-40.69%

CURRENT VS 10Y AVG

-51.07%

CURRENT VS 15Y AVG

-67.10%

CURRENT VS 20Y AVG

-80.83%

BABA Competitors' Return on Invested Capital (ROIC)

NAMEMARKET CAPRETURN ON INVESTED CAPITAL (ROIC)TTM3Y5Y
Alibaba Group Holding Limited (BABA)3.17%5.52%5.79%5.34%
The Home Depot, Inc. (HD)$320.40B19.03%20.67%23.43%27.98%
McDonald's Corporation (MCD)$200.54B17.44%17.68%17.24%16.22%
The TJX Companies, Inc. (TJX)$182.13B21.50%21.31%20.40%17.05%
Booking Holdings Inc. (BKNG)$127.07B50.82%47.48%38.26%27.16%
Lowe's Companies, Inc. (LOW)$121.88B20.42%23.48%27.58%28.23%
Starbucks Corporation (SBUX)$111.02B8.48%12.44%15.12%13.40%
Marriott International, Inc. (MAR)$103.79B15.59%15.33%16.05%12.10%
MercadoLibre, Inc. (MELI)$83.20B11.78%14.75%13.57%9.51%
Hilton Worldwide Holdings Inc. (HLT)$77.99B11.29%13.84%13.21%9.40%

Capital Efficiency

ROIC

3.2%

ROE

9.8%

Alibaba Group Holding Limited Return on Invested Capital (ROIC) Formula & Definition

ROIC = NOPAT / Invested Capital

Return on invested capital measures the after-tax return a company earns on all capital (debt and equity) invested in the business.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

Alibaba Group Holding Limited Return on Invested Capital (ROIC) FAQ

What is the return on invested capital (ROIC) for Alibaba Group Holding Limited (BABA)?
The return on invested capital (ROIC) for BABA stock is 3.17%.
Is Alibaba Group Holding Limited's return on invested capital (ROIC) high or low?
Alibaba Group Holding Limited's return on invested capital (ROIC) of 3.17% is 41% below its 5-year average of 5.34%, near the low end of its 5-year range (3.17%–7.87%).
What is the TTM average return on invested capital (ROIC) for Alibaba Group Holding Limited (BABA)?
The TTM average return on invested capital (ROIC) for BABA stock is 5.52%.
What is the 3Y average return on invested capital (ROIC) for Alibaba Group Holding Limited (BABA)?
The 3Y average return on invested capital (ROIC) for BABA stock is 5.79%.
What is the 5Y average return on invested capital (ROIC) for Alibaba Group Holding Limited (BABA)?
The 5Y average return on invested capital (ROIC) for BABA stock is 5.34%.
What is the 10Y average return on invested capital (ROIC) for Alibaba Group Holding Limited (BABA)?
The 10Y average return on invested capital (ROIC) for BABA stock is 6.48%.
What is the 15Y average return on invested capital (ROIC) for Alibaba Group Holding Limited (BABA)?
The 15Y average return on invested capital (ROIC) for BABA stock is 9.64%.
What is the 20Y average return on invested capital (ROIC) for Alibaba Group Holding Limited (BABA)?
The 20Y average return on invested capital (ROIC) for BABA stock is 16.54%.

Alibaba Group Holding Limited Return on Invested Capital (ROIC) History

DATERETURN ON INVESTED CAPITAL (ROIC)
2026-03-313.17%
2025-03-317.87%
2024-03-316.25%
2023-03-315.85%
2022-03-313.34%
2021-03-315.59%
2020-03-317.40%
2019-03-316.06%
2018-03-319.11%
2017-03-318.42%
2016-03-318.21%
2015-03-318.42%
2014-03-3125.98%
2013-03-3127.28%
2012-03-3111.58%
2010-12-3120.64%
2009-12-3117.24%
2008-12-3119.03%
2007-12-3118.39%
2006-12-31110.92%

About Alibaba Group Holding Limited

Alibaba Group Holding Limited, through its various subsidiaries, furnishes crucial technological infrastructure and extensive marketing channels. This comprehensive support allows merchants, brands, retailers, and other businesses to effectively engage with their customer base, both within the People's Republic of China and across international markets. The company's operations are organized across seven primary segments: China Commerce, International Commerce, Local Consumer Services, Cainiao (its logistics network), Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. The company's extensive digital ecosystem features premier online retail platforms like Taobao and Tmall. Wholesale business-to-business transactions are facilitated through 1688.com and Alibaba.com. Globally, it operates retail platforms such as AliExpress, Lazada, Trendyol, and Daraz. For fresh goods and groceries, it offers Freshippo, and Tmall Global specializes in import e-commerce. Monetization and advertising solutions are provided via Alimama, its proprietary platform, which offers diverse marketing services including pay-for-performance, in-feed, and display ads, supported by the Taobao Ad Network and Exchange for real-time bidding. Logistics operations are primarily handled by the Cainiao Network. Its local consumer services encompass Ele.me for on-demand food and delivery, Koubei for restaurant and local service directories, and Fliggy for travel booking. Alibaba Cloud offers a wide array of services, including elastic computing, data storage, networking, security, database management, big data analytics, and Internet of Things (IoT) solutions. It also supplies hardware, software licenses, installation, and application development and maintenance. The digital media and entertainment division includes Youku, an online video platform; Quark, an information search and content consumption tool; and Alibaba Pictures, collectively offering diverse content spanning films, live events, news feeds, literature, and music. Its innovation portfolio further extends to Amap, a mobile application for digital mapping and navigation; DingTalk, a business communication and efficiency platform; the Tmall Genie smart speaker; and Qwen, an advanced artificial intelligence chatbot. Founded in 1999, Alibaba Group is headquartered in Hangzhou, People's Republic of China.

Hangzhou
124,320 employees
Consumer Cyclical / Specialty Retail
Sector
Consumer Cyclical
Industry
Specialty Retail
CEO
Yongming Wu