Electronic Arts Inc (EA)

Gross profit margin

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Gross profit (ttm) US$ in thousands 5,896,000 5,748,000 5,737,000 5,626,000 5,809,000 5,856,000 5,753,000 5,737,000 5,634,000 5,614,000 5,459,000 5,349,000 5,132,000 4,753,000 4,667,000 4,200,000 4,135,000 4,226,000 4,239,000 4,317,000
Revenue (ttm) US$ in thousands 7,456,000 7,340,000 7,402,000 7,291,000 7,562,000 7,657,000 7,593,000 7,583,000 7,426,000 7,377,000 7,285,000 7,207,000 6,991,000 6,512,000 6,396,000 5,721,000 5,629,000 5,670,000 5,590,000 5,787,000
Gross profit margin 79.08% 78.31% 77.51% 77.16% 76.82% 76.48% 75.77% 75.66% 75.87% 76.10% 74.93% 74.22% 73.41% 72.99% 72.97% 73.41% 73.46% 74.53% 75.83% 74.60%

March 31, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $5,896,000K ÷ $7,456,000K
= 79.08%

The gross profit margin of Electronic Arts Inc has exhibited a generally increasing trend from June 30, 2020, to March 31, 2025. The margin started at 74.60% in June 2020 and experienced fluctuations over the subsequent quarters but generally trended upwards. By March 31, 2025, the gross profit margin had reached its highest point of 79.08%.

This indicates that Electronic Arts Inc has been effectively managing its production costs and generating more revenue from its core business activities over the period under review. A rising gross profit margin is a positive indicator of the company's operational efficiency and pricing strategy, as it shows an increasing ability to generate profits from its sales after accounting for the costs directly associated with production.

Investors and stakeholders may view the consistent improvement in gross profit margin favorably, as it suggests that the company is becoming more profitable and potentially enhancing shareholder value. It is important to continue monitoring this metric to assess the company's ability to maintain or further improve its profitability in the future.