Is Alibaba (9988) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 9.9% / 30% | 17.1% / 30% | 5.2% / 30% | 2.08% / 5% | ✓ HALAL |
| DJIM | 9.9% / 33% | 17.1% / 33% | 5.2% / 33% | 2.08% / 5% | ✓ HALAL |
| MSCI | 13.8% / 33% | 23.7% / 33% | 7.2% / 33% | 2.08% / 5% | ✓ HALAL |
| S&P | 9.9% / 33% | 17.1% / 33% | 5.2% / 33% | 2.08% / 5% | ✓ HALAL |
| FTSE | 13.8% / 33% | 23.7% / 33% | 7.2% / 50% | 2.08% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 40.8% | |
| Operating Margin | 7.1% | |
| Net Margin | 8.9% | |
| Return on Equity (ROE) | 8.2% | |
| Return on Assets (ROA) | 3.1% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $163.5B |
| Free Cash Flow | $77.5B |
| Total Debt | $248.1B |
| Debt-to-Equity | 25.9 |
| Current Ratio | 1.3 |
| Total Assets | $1.8T |
Price & Trading
| Last Close | HKD 123.00 |
| 50-Day MA | HKD 147.12 |
| 200-Day MA | HKD 143.79 |
| Avg Volume | 88.4M |
| Beta | 0.4 |
|
52-Week Range
HKD 95.70
| |
About Alibaba (9988)
Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. It operates digital retail platforms under the Taobao and Tmall names; wholesale marketplaces through 1688.com and Alibaba.com; global e-commerce platform under the AliExpress name; e-commerce platforms under the Lazada, Trendyol, and Daraz names; and consumer-to-consumer community and marketplace under the Tmall Global, Tmall Supermarket, and Xianyu names. The company also operates Cainiao, an e-commerce logistics solution; Ele.me, an on-demand delivery and local services platform; and Amap, a provider of mobile digital map, navigation, and real-time traffic information; Youku, an online video platform; and Damai Entertainment that provides content production, promotion and distribution, performance and event ticketing management, IP-related licensing and operations, cinema ticketing management, and internet data services for the entertainment industry. In addition, it provides elastic computing, storage, network, security, database, big data, cloud native, and Alibaba cloud model studio services; and hardware, software license and installation, and application development and maintenance services, as well as sells membership packages and subscriptions. Further, the company offers Freshippo, a retail platform for groceries and goods; Alibaba Health for medical and healthcare solutions; mobile games under the Lingxi Games name; UC Browser, an information service platform; Quark, an information services platform for young users; Fliggy, an online travel platform; and DingTalk, a collaboration workplace and enterprise management platform. It also offers the Alibaba Token Hub (ATH) Business, which develops multimodal foundation models; the MaaS Business Line, which builds AI technical infrastructure; and the Qwen Business Unit, which is responsible for a personal AI assistant. Alibaba Group Holding Limited was incorporated in 1999 and is based in Causeway Bay, Hong Kong.
Purification Calculator
As a halal stock with 2.08% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Alibaba (9988) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Alibaba is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Alibaba's debt ratio?
Alibaba's debt ratio is 9.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 13.8%.
Does Alibaba require dividend purification?
Yes, Alibaba has an impermissible income ratio of 2.08%, which means 2.08% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Alibaba's key financial metrics?
Alibaba has a market capitalization of $2.3T, trailing P/E ratio of 22.4, and revenue of $996.3B. The company maintains a gross margin of 40.8% and a net margin of 8.9%. Return on equity stands at 8.2%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.