Electronic Arts Inc (EA)

Pretax 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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 1,605,000 1,458,000 1,435,000 1,427,000 1,589,000 1,510,000 1,410,000 1,446,000 1,326,000 1,501,000 1,310,000 1,209,000 1,081,000 890,000 1,044,000 857,000 1,017,000 1,266,000 1,395,000 1,540,000
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
Pretax margin 21.53% 19.86% 19.39% 19.57% 21.01% 19.72% 18.57% 19.07% 17.86% 20.35% 17.98% 16.78% 15.46% 13.67% 16.32% 14.98% 18.07% 22.33% 24.96% 26.61%

March 31, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,605,000K ÷ $7,456,000K
= 21.53%

The pretax margin of Electronic Arts Inc has shown fluctuations over the period from June 30, 2020, to March 31, 2025. The trend indicates a gradual decline in pretax margin from 26.61% in June 2020 to 14.98% in June 2021, followed by a subsequent recovery to 21.53% in March 2025.

The company experienced a significant decrease in pretax margin in mid-2021, potentially indicating challenges or increased expenses during that period. However, Electronic Arts Inc managed to improve its performance and enhance profitability in the following quarters.

Overall, the pretax margin of Electronic Arts Inc has displayed variability but generally maintained above-average levels, reflecting the company's ability to generate profits before accounting for taxes relative to its total revenue. It is essential for investors and stakeholders to monitor pretax margin trends as they provide insights into the company's operational efficiency and financial health.