Electronic Arts Inc (EA)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 77.39% | 75.87% | 73.41% | 73.46% | 75.28% |
| Operating profit margin | 20.07% | 17.94% | 16.15% | 18.58% | 26.10% |
| Pretax margin | 21.01% | 17.86% | 15.46% | 18.07% | 27.23% |
| Net profit margin | 16.83% | 10.80% | 11.29% | 14.87% | 54.89% |
Electronic Arts Inc has shown consistent profitability over the past five years, with its gross profit margin steadily increasing from 73.46% in 2021 to 77.39% in 2024. This indicates the company's ability to control production costs and generate profit from its sales.
The operating profit margin also reflects a positive trend, increasing from 16.15% in 2022 to 20.07% in 2024. This shows the efficiency of Electronic Arts in managing its operating expenses and generating operating income from its core business activities.
The pretax margin has also improved over the years, reaching 21.01% in 2024, indicating the company's ability to generate profit before accounting for taxes. This suggests effective cost management and revenue generation strategies.
However, there was a significant decrease in net profit margin from 54.89% in 2020 to 16.83% in 2024. This could be due to various factors such as higher expenses or changes in tax laws. It is important for Electronic Arts to closely monitor and address the factors impacting its net profit margin to ensure long-term profitability.
Overall, Electronic Arts Inc's profitability ratios demonstrate a strong performance in terms of generating profit from its operations, but it is essential for the company to address any factors affecting its net profit margin to sustain its profitability in the future.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.31% | 9.90% | 8.18% | 7.87% | 13.00% |
| Return on assets (ROA) | 9.49% | 5.96% | 5.72% | 6.30% | 27.35% |
| Return on total capital | 17.53% | 15.09% | 11.99% | 10.93% | 19.75% |
| Return on equity (ROE) | 16.94% | 11.00% | 10.35% | 10.68% | 40.73% |
Electronic Arts Inc's profitability ratios have shown some fluctuations over the past five years:
1. Operating return on assets (Operating ROA) has generally increased from 2011 to 2024, indicating that the company has become more efficient at generating operating income from its assets.
2. Return on assets (ROA) shows a downward trend from 2020 to 2024, suggesting that the company's overall ability to generate profit from its assets has decreased slightly.
3. Return on total capital has also shown an increasing trend over the period, indicating that the company has been able to generate higher returns on the total capital employed in its operations.
4. Return on equity (ROE) has varied significantly, with a sharp decline in 2022 followed by a gradual recovery. Despite the fluctuations, the ROE has remained at healthy levels, indicating that the company has been able to generate decent returns for its shareholders.
Overall, Electronic Arts Inc's profitability ratios suggest a mixed performance in terms of asset utilization and return generation, with some ratios showing improvement while others displaying variability.