Electronic Arts Inc (EA)
Return on equity (ROE)
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 3,039,000 | 2,830,000 | 2,746,000 | 2,147,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 7,641,000 | 7,856,000 | 7,728,000 | 7,840,000 | 7,728,000 | 8,075,000 | 7,782,000 | 7,461,000 | 7,237,000 | 7,158,000 | 6,485,000 |
| ROE | 16.94% | 14.32% | 13.11% | 12.18% | 11.00% | 13.76% | 11.55% | 11.73% | 10.35% | 8.38% | 9.99% | 8.75% | 10.68% | 15.26% | 16.27% | 25.48% | 40.73% | 39.10% | 38.36% | 33.11% |
March 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,273,000K ÷ $7,513,000K
= 16.94%
Electronic Arts Inc's return on equity (ROE) has shown a fluctuating trend over the past few quarters. The ROE for the most recent quarter, ending on March 31, 2024, was 16.94%, indicating a strong return generated for shareholders based on the company's equity. This represents an improvement compared to the ROE of 14.32% recorded in the previous quarter and marks a positive trend.
Looking further back, the ROE has generally been increasing since the end of 2021, with occasional fluctuations. The highest ROE in recent history was reported in March 2020 at 40.73%, which was followed by a substantial decrease in the subsequent quarter. Despite the volatility, the ROE for Electronic Arts Inc has generally remained at healthy levels above 10% in recent quarters.
Overall, the ROE trend suggests that Electronic Arts Inc has been effectively utilizing its equity to generate returns for its shareholders, although there have been fluctuations which may indicate varying levels of profitability or efficiency in the company's operations and capital structure management. Further analysis would be needed to fully understand the factors driving these fluctuations and assess the company's long-term profitability and shareholder value creation potential.
Peer comparison
Mar 31, 2024