Electronic Arts Inc (EA)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,121,000 | 1,049,000 | 1,046,000 | 1,151,000 | 1,273,000 | 1,079,000 | 993,000 | 893,000 | 802,000 | 1,039,000 | 901,000 | 896,000 | 789,000 | 640,000 | 785,000 | 676,000 | 837,000 | 1,179,000 | 1,314,000 | 1,983,000 |
| Total stockholders’ equity | US$ in thousands | 6,386,000 | 7,412,000 | 7,408,000 | 7,400,000 | 7,513,000 | 7,533,000 | 7,575,000 | 7,334,000 | 7,293,000 | 7,551,000 | 7,798,000 | 7,641,000 | 7,625,000 | 7,617,000 | 7,856,000 | 7,728,000 | 7,840,000 | 7,963,000 | 8,075,000 | 7,782,000 |
| ROE | 17.55% | 14.15% | 14.12% | 15.55% | 16.94% | 14.32% | 13.11% | 12.18% | 11.00% | 13.76% | 11.55% | 11.73% | 10.35% | 8.40% | 9.99% | 8.75% | 10.68% | 14.81% | 16.27% | 25.48% |
March 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,121,000K ÷ $6,386,000K
= 17.55%
Electronic Arts Inc's return on equity (ROE) has shown fluctuations over the given time period. The ROE declined from 25.48% in June 2020 to 8.75% in June 2021, indicating a significant decrease in profitability relative to shareholder equity. However, the ROE started to gradually increase thereafter, reaching 17.55% by March 2025.
The varying ROE figures suggest changes in the company’s efficiency in generating profits from the shareholders' equity. A higher ROE reflects a better utilization of equity to generate earnings. The improvement in ROE from the low point in June 2021 to the high point in March 2025 indicates a potential enhancement in the company's profitability and efficiency in utilizing shareholder funds.
Investors and analysts may further investigate the factors contributing to these fluctuations in ROE to assess Electronic Arts Inc's financial performance and sustainability in generating returns for its shareholders over the specified period.
Peer comparison
Mar 31, 2025