Electronic Arts Inc (EA)

Return on equity (ROE)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Net income	US$ in thousands	1,273,000	802,000	789,000	837,000	3,039,000
Total stockholders’ equity	US$ in thousands	7,513,000	7,293,000	7,625,000	7,840,000	7,461,000
ROE		16.94%	11.00%	10.35%	10.68%	40.73%

March 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,273,000K ÷ $7,513,000K
= 16.94%

Electronic Arts Inc's Return on Equity (ROE) has displayed a fluctuating trend over the past five years. The ROE for the most recent fiscal year ending on March 31, 2024, stands at 16.94%, significantly higher than the previous year's 11.00%. This increase indicates that the company generated $16.94 in net income for every dollar of shareholders' equity, reflecting improved profitability and efficiency in its operations.

Comparing the ROE figures further back, we observe a gradual rise from 10.35% in March 2022 to 10.68% in March 2021. However, there was a substantial decline in ROE to 40.73% in March 2020, which could be due to various factors such as exceptional earnings or a sharp increase in shareholder equity.

Overall, Electronic Arts Inc's ROE has shown variability but has generally been positive, indicating the company's ability to generate value from shareholders' investments. The recent increase in ROE suggests improved financial performance, which may be attributed to enhanced operational efficiency, better profit margins, or effective utilization of assets. Monitoring ROE trends over time can provide valuable insights into the company's financial health and management effectiveness.