/roa-analysis-quiz BABA 2024 EBAY 2024
Skill_Version: 1.1 Student: catie Model: sonnet-4-6 Date: 2026-06-18
AI: Comparing Alibaba FY2024 vs. eBay FY2024.
Note: All dollar amounts below are in thousands. For example, $137,300,000 means approximately $137.3 billion in actual dollars.
Income Statement
| Alibaba (FY2024) | eBay (FY2024) | |
|---|---|---|
| Net Revenue | $137,300,000 | $10,283,000 |
| Cost of Goods (COGS) | $82,446,000 | $2,880,000 |
| Gross Margin | $54,854,000 | $7,403,000 |
| SG&A | $25,943,000 | $3,233,000 |
| Operating Profit | $19,417,000 | $2,318,000 |
| Net Profit | $17,929,000 | $1,975,000 |
Key Ratios & ROA Components
| Alibaba (FY2024) | eBay (FY2024) | |
|---|---|---|
| Gross Margin % | 39.95% | 71.99% |
| SG&A % of Revenue | 18.90% | 31.44% |
| Operating Margin % | 14.14% | 22.54% |
| Net Profit Margin % | 13.06% | 19.21% |
| Asset Turnover | 0.55 | 0.53 |
| Inventory Turnover | N/A | N/A |
Balance Sheet
| Alibaba (FY2024) | eBay (FY2024) | |
|---|---|---|
| Inventory | N/A | N/A |
| Current Assets | $92,886,000 | $7,567,000 |
| Total Assets | $248,629,000 | $19,365,000 |
| Current Liabilities | $59,992,000 | $6,098,000 |
| Total Liabilities | $98,409,000 | $14,207,000 |
| Total Equity | $150,220,000 | $5,158,000 |
I’ve pulled up Alibaba FY2024 (Resale) vs. eBay FY2024 (Resale). We’re going to work through some questions on Return on Assets (ROA) and the Strategic Profit Model. I’ll ask one question at a time — take your time, and just reply with a single letter if you want to keep it short. Let’s start!
Question 1 of 10
What does Asset Turnover measure?
- How efficiently a company generates revenue from its assets
- How much profit a company keeps from each dollar of sales
- How quickly a company sells through its inventory
- How much debt a company uses to finance its assets
User: c
AI: Not quite! Here’s a hint: Asset Turnover has the word “assets” in it — think about what assets are (everything a company owns: buildings, equipment, cash, etc.) and what a company does with them to make money.
What does Asset Turnover measure?
- How efficiently a company generates revenue from its assets
- How much profit a company keeps from each dollar of sales
- How quickly a company sells through its inventory
- How much debt a company uses to finance its assets
User: a
AI: Correct! ✓
Asset Turnover = Net Revenue ÷ Total Assets. It tells you how many dollars of revenue the company squeezes out of every dollar of assets it owns. Alibaba generates $0.55 in revenue per dollar of assets; eBay generates $0.53. Both are marketplace platforms with no inventory, so neither turns its assets over very fast.
Question 2 of 10
Using the income statement data in the table, calculate Alibaba’s Gross Margin % for FY2024. Which value is closest?
(Hint: Gross Margin ÷ Net Revenue × 100)
- 44.2%
- 39.9%
- 34.7%
- 60.1%
User: b ok lets stop this is showed on the table