Electronic Arts Inc (EA)

Return on assets (ROA)

Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Net income US$ in thousands 1,121,000 1,273,000 802,000 789,000 837,000
Total assets US$ in thousands 12,368,000 13,420,000 13,459,000 13,800,000 13,288,000
ROA 9.06% 9.49% 5.96% 5.72% 6.30%

March 31, 2025 calculation

ROA = Net income ÷ Total assets
= $1,121,000K ÷ $12,368,000K
= 9.06%

Electronic Arts Inc's Return on Assets (ROA) has exhibited fluctuations over the past five years.

As of March 31, 2021, the ROA was 6.30%, which indicates that for every dollar of assets the company possessed, it generated a return of 6.30 cents. Subsequently, the ROA decreased to 5.72% by March 31, 2022, suggesting a slight decline in the company's ability to generate earnings from its assets.

However, there was a rebound in the ROA for the following fiscal year, as of March 31, 2023, reaching 5.96%. This uptick indicates an improvement in the company's efficiency in utilizing its assets to generate profits. The trend continued to strengthen in the subsequent years, with the ROA reaching 9.49% as of March 31, 2024, and further at 9.06% as of March 31, 2025.

The increasing trend in ROA from 2023 indicates that Electronic Arts Inc has been more effective in generating earnings relative to its asset base. A higher ROA suggests better asset utilization and profitability, reflecting positively on the company's management of its resources. Overall, the recent years have shown a commendable performance in terms of return on assets for Electronic Arts Inc.