Electronic Arts Inc (EA)
Return on total capital
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,647,000 | 1,384,000 | 1,139,000 | 1,062,000 | 1,552,000 |
| Long-term debt | US$ in thousands | 1,882,000 | 1,880,000 | 1,878,000 | 1,876,000 | 397,000 |
| Total stockholders’ equity | US$ in thousands | 7,513,000 | 7,293,000 | 7,625,000 | 7,840,000 | 7,461,000 |
| Return on total capital | 17.53% | 15.09% | 11.99% | 10.93% | 19.75% |
March 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,647,000K ÷ ($1,882,000K + $7,513,000K)
= 17.53%
Electronic Arts Inc's return on total capital has shown a positive trend over the past five years. The return on total capital increased from 19.75% in 2020 to 17.53% in 2024, indicating that the company has been generating more returns relative to its total capital employed in recent years. This improvement suggests that Electronic Arts has been utilizing its capital more efficiently to generate profits for its shareholders.
The consistent increase in the return on total capital signifies that the company's operational performance has been steadily improving, resulting in higher returns for investors. The rising trend also indicates that Electronic Arts has been able to effectively manage its capital investments and generate more value from its assets over time.
Overall, the upward trajectory of Electronic Arts Inc's return on total capital reflects positively on the company's financial health and efficiency in utilizing its capital resources to generate profits.
Peer comparison
Mar 31, 2024