Electronic Arts Inc (EA)

Pretax margin

Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Earnings before tax but after interest (EBT) US$ in thousands 1,605,000 1,589,000 1,326,000 1,081,000 1,017,000
Revenue US$ in thousands 7,463,000 7,562,000 7,426,000 6,991,000 5,629,000
Pretax margin 21.51% 21.01% 17.86% 15.46% 18.07%

March 31, 2025 calculation

Pretax margin = EBT ÷ Revenue
= $1,605,000K ÷ $7,463,000K
= 21.51%

The pretax margin, a key profitability ratio, reflects Electronic Arts Inc's ability to generate profit before taxes relative to its total revenue. Over the past five years, the company's pretax margin exhibited some fluctuations. In March 2021, the pretax margin stood at 18.07%, showing a robust profitability level. However, by March 2022, the margin dipped to 15.46%, indicating a slight decrease in profitability. Subsequently, in March 2023, the margins improved to 17.86%, showing a recovery in profitability trends. The trend continued positively, with Electronic Arts Inc achieving a pretax margin of 21.01% by March 2024 and further increasing to 21.51% by March 2025. Overall, despite some fluctuations, the company managed to enhance its pretax margin over the five-year period, showcasing an improving profitability stance.