Question
Alibaba Group Holding Limited reported an income statement for the year ended March 31, 2023. The company reported revenue of $119,646 million and cost of
Alibaba Group Holding Limited reported an income statement for the year ended March 31, 2023. The company reported revenue of $119,646 million and cost of revenue of $68,234 million, resulting in a gross profit of $51,412 million. Operating expenses were $27,816 million, leading to an operating income of $23,596 million. After deducting interest expenses of $872 million and income taxes of $5,891 million, Alibaba Group Holding Limited reported a net income of $16,833 million.
a. Calculate Alibaba Group Holding Limited's gross profit margin. b. Determine the operating income margin for Alibaba Group Holding Limited. c. Discuss the impact of Alibaba Group Holding Limited's interest expense on its profitability. d. Analyze the effective tax rate of Alibaba Group Holding Limited and its implications for global operations.
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