Financial Performance of Alibaba Holding Pvt. Ltd.

Financial
Management

Table of Contents
Introduction-................................................................................................................................................3
Identification of Problem-...........................................................................................................................4
Critical Evaluation-.....................................................................................................................................7
Conclusion-...............................................................................................................................................10
References-................................................................................................................................................11

Introduction-
This report is based on understanding the financial performance of company. Financial
performance of any firm can be measured by its liquidity, efficiency, solvency and profitability.
Different financial ratios are used to measure company’s financial performance. Financial ratios
give idea about the financial performance of the company and can compare performance with
other companies also. Financial performance is defined as the ability of a company to manage
and control its resources and it tells about company’s financial condition over a certain period
what changes should be made
The objective of this report is to measure financial performance of Alibaba holding pvt.ltd. This
company is listed on New York stock exchange. Analysis of financial ratios of the company is
to be done in this report which helps in understanding the financial condition of company. The
scope of this report to check if any kind changes can be made within organization to improve its
financial condition. To know about that Company is managing its assets properly or not.
Financial performance of company plays an important part in growth of business if company is
performing better it means company is able to manage its financials in an efficient manner. If
company’s performance is not as expected then company needs to focus on managing its
financials.
Financial performance of the company can be measured with the help of financial records such
as- financial statements, balance sheet and profit and loss account. Income statement provides
summary of all the operations took place in an year. It starts from revenue and ends with net
income. Balance sheet gives information about assets and liabilities of company. It also gives
information about the types of assets company holds and percentage of assets financed with
liabilities. Cash flow statement is combination of both income statement and balance sheet and
provides reconciliation between net income and cash flow. Information gathered from these
records helps in calculation of financial ratios. Analysis of financial ratios tells about company’s
performance. Investors and analyst compares same sectors companies with the help of financial
performance.

Identification of Problem-
Alibaba group holding pvt ltd is also known as alibaba.com. It is Chinese multinational company
specialized in E-commerce, retail, internet and technology. It is founded by Jack Ma on 28th
June, 1999. On 19th September, 2014 Company came up with its initial public offering and raised
funds of $25 Million. It is one of the top 10 most valuable corporations according to Forbes
global 2020 list. Company provides business to consumer, consumer to consumer and business
to business sales services by using web portals. Company also provides electronic payment
services, shopping search engines and cloud computing services.
Alibaba’s main competitors are Walmart, ASOS, JD.com and Amazon. Since the emergence of
the E-commerce business has been risen. Similar to Alibaba, Amazon also an E-commerce
company and giving tough competition and currently number one competitor trying to cover
Asia and other continents as well. Amazon is an ideal platform for business to consumer.
Another competitor of alibaba is export hub. Export hub encourages Chinese suppliers to enter in
international market. Made in China is also a competitor of Alibaba group. It’s main focus is on
business to business market place. It is operated by Focus technology and it was established in
1996. There are many more competitors of Alibaba group.
As already discussed company has many competitors so in order to survive in the market
company needs to focus on its revenue and it should reduce its production cost, it helps in
increasing the profit. If company is not able to compete effectively then it would affect
adversely. Main Problems which are company facing-
 Maintaining the trust of the customers in order to save the reputation of the brand.
 Company needs to give tough competition to its competitors otherwise financial
conditions would be adversely affected.
 Revenue growth is important for company.
 Alibaba rely on Alipay for all the payments processing, in any case its services are
restricted or unavailable to company and users then it can adversely aggect business.
 Innovation is important for company to improve its financial conditions.