Electronic Arts Inc (EA)

Operating return on assets (Operating ROA)

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
Operating income (ttm) US$ in thousands 1,525,000 1,452,000 1,440,000 1,433,000 1,606,000 1,681,000 1,605,000 1,655,000 1,554,000 1,522,000 1,335,000 1,248,000 1,129,000 939,000 1,088,000 897,000 1,046,000 1,272,000 1,382,000 1,501,000
Total assets US$ in thousands 12,368,000 13,451,000 13,136,000 12,708,000 13,420,000 13,617,000 13,139,000 13,083,000 13,459,000 13,470,000 13,079,000 13,192,000 13,800,000 13,930,000 13,019,000 12,734,000 13,288,000 12,420,000 11,470,000 11,284,000
Operating ROA 12.33% 10.79% 10.96% 11.28% 11.97% 12.34% 12.22% 12.65% 11.55% 11.30% 10.21% 9.46% 8.18% 6.74% 8.36% 7.04% 7.87% 10.24% 12.05% 13.30%

March 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,525,000K ÷ $12,368,000K
= 12.33%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operational activities relative to its total assets. The trend of Electronic Arts Inc's Operating ROA over the past few years indicates fluctuations in its operational efficiency and asset utilization.

From June 2020 to December 2020, Electronic Arts Inc's Operating ROA decreased from 13.30% to 10.24%, suggesting a decline in the company's profitability generated from its assets during this period. However, there was a slight improvement in the ratio by March 2021, reaching 7.87%, before dropping to 7.04% by June 2021, indicating a temporary setback in operational performance.

Subsequently, there was a noticeable increase in Operating ROA from September 2021 to December 2021, reaching 8.36% and then dropping to 6.74% by the end of the year. However, there was a positive trend in the ratio from March 2022 to December 2024, with Operating ROA steadily increasing from 8.18% to 10.79% during this period.

From March 2025, Electronic Arts Inc's Operating ROA showed a notable improvement, reaching 12.33%, indicating an enhancement in the company's operational profitability relative to its assets. Overall, fluctuations in Operating ROA reflect changes in the company's operational efficiency and asset utilization, highlighting the importance of closely monitoring this ratio to assess Electronic Arts Inc's financial performance.