uploads/2018/11/BIDU.png

A Look at Baidu’s Profitability Ratios

By

Updated

Efficiency

When it comes to efficiency, Baidu’s revenue-to-employee ratio for the trailing 12 months stands at 243,138x compared to the industry and sector averages of 30,376,650x and 5,679,328x, respectively.

Baidu’s net income-to-employee ratio for the trailing 12 months stands at 43,874x compared to the industry and sector averages of 5,485,241x and 593,263x, respectively. Baidu’s receivable turnover for the trailing 12 months stands at 18.15x.

Article continues below advertisement

Price ratios

When it comes to valuation ratios, Baidu’s price-to-sales ratio for the trailing 12 months stands at 7.70x compared to the industry average of 8.52x and the sector average of 2.67x.

Baidu’s price-to-book ratio for the most recent quarter stands at 5.79x compared to the industry average of 6.01x and the sector average of 2.36x. Baidu’s price-to-tangible book value stands at 7.33x compared to the industry average of 9.54x and the sector average of 3.63x.

The company’s price-to-cash flow for the trailing 12 months stands at 26.15x compared to the industry average of 29.71x and the sector average of 13.97x.

In comparison, the price-to-cash flows of Baidu’s peers Alphabet (GOOGL), Facebook (FB), eBay (EBAY), and Alibaba (BABA) stand at 26.58x, 15.09x, 5.12x, and 47.27x, respectively.

Financial strength

Baidu’s quick ratio for the most recent quarter stands at 5.99x compared to the industry average of 1.97x. Its current ratio is 6.01x, and it has a long-term debt-to-equity ratio of 2.67x. Its interest-coverage ratio for the trailing 12 months is 39.12x compared to the industry average of 24.04x and the sector average of 16.61x.

Return on assets

Baidu boasts a 10.09x return-on-assets ratio for the trailing 12 months compared to the industry and sector averages of 11.68x and 13.74x, respectively. Its five-year average return-on-assets ratio stands at 13.10x, while the ratio was 11.92x and 10.36x for the industry and the sector, respectively.

Baidu’s trailing-12-month return-on-investment ratio stands at 14.59x, while its five-year average is 17.80x. Its return-on-equity ratio for the trailing 12 months stands at 22.08x.

Advertisement

More From Market Realist