Electronic Arts Inc (EA)
Pretax margin
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,589,000 | 1,326,000 | 1,081,000 | 1,017,000 | 1,508,000 |
| Revenue | US$ in thousands | 7,562,000 | 7,426,000 | 6,991,000 | 5,629,000 | 5,537,000 |
| Pretax margin | 21.01% | 17.86% | 15.46% | 18.07% | 27.23% |
March 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,589,000K ÷ $7,562,000K
= 21.01%
Electronic Arts Inc's pretax margin has exhibited fluctuating trends over the past five years. In FY 2020, the company reported a robust pretax margin of 27.23%, indicating that for every dollar of revenue generated, it retained approximately $0.27 before accounting for taxes. However, in the subsequent years, the pretax margin experienced a downward trend, dropping to 18.07% in FY 2021, 15.46% in FY 2022, and then slightly recovering to 17.86% in FY 2023.
The most recent data for FY 2024 shows an improvement in the pretax margin to 21.01%, suggesting that the company has been able to enhance its profitability compared to the previous year. It is important to note that a higher pretax margin generally indicates better operational efficiency and cost management. Analyzing the reasons behind these fluctuations in pretax margin over the years can provide valuable insights into the company's financial performance and management strategies.
Peer comparison
Mar 31, 2024