Electronic Arts Inc (EA)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 79.32% | 77.39% | 75.87% | 73.41% | 73.46% |
| Operating profit margin | 20.37% | 20.07% | 17.94% | 16.15% | 18.58% |
| Pretax margin | 21.51% | 21.01% | 17.86% | 15.46% | 18.07% |
| Net profit margin | 15.02% | 16.83% | 10.80% | 11.29% | 14.87% |
Electronic Arts Inc has demonstrated a consistent improvement in its profitability ratios over the last five years. The gross profit margin has steadily increased from 73.46% in March 2021 to 79.32% in March 2025, indicating the company's ability to efficiently manage its cost of goods sold.
Similarly, the operating profit margin has shown a positive trend, rising from 18.58% in March 2021 to 20.37% in March 2025. This suggests that Electronic Arts has been effective in controlling its operating expenses while generating revenue.
The pretax margin also reflects strong performance, increasing from 18.07% in March 2021 to 21.51% in March 2025. This implies that the company has been successful in managing its pre-tax earnings relative to its total revenue.
Lastly, the net profit margin has shown fluctuation but remains relatively healthy, ranging from 10.80% to 16.83% over the five-year period. This indicates that Electronic Arts has been able to generate a reasonable level of net income relative to its total revenue, despite some variability.
Overall, Electronic Arts Inc's profitability ratios reflect a positive trend, indicating effective cost management and revenue generation strategies that have contributed to improving the company's overall profitability over the years.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.29% | 11.31% | 9.90% | 8.18% | 7.87% |
| Return on assets (ROA) | 9.06% | 9.49% | 5.96% | 5.72% | 6.30% |
| Return on total capital | 0.00% | 21.92% | 18.98% | 14.77% | 13.34% |
| Return on equity (ROE) | 17.55% | 16.94% | 11.00% | 10.35% | 10.68% |
Electronic Arts Inc's profitability ratios show a positive trend over the years. The Operating Return on Assets (Operating ROA) increased from 7.87% in March 2021 to 12.29% in March 2025, indicating more efficient utilization of assets to generate operating income. Similarly, Return on Assets (ROA) improved from 6.30% in March 2021 to 9.06% in March 2025, reflecting the company's ability to generate net income from its total assets.
Return on Total Capital increased significantly from 13.34% in March 2021 to 21.92% in March 2024, but then dropped to 0.00% in March 2025. This may suggest a change in the capital structure or investment decisions made by the company during this period.
Return on Equity (ROE) also showed a positive trend, rising from 10.68% in March 2021 to 17.55% in March 2025. This demonstrates that Electronic Arts Inc is effectively generating profits from shareholders' equity.
Overall, the increasing trend in profitability ratios indicates that Electronic Arts Inc has been successful in enhancing its profitability and efficiency in generating returns for both assets and equity holders over the analyzed period.