Electronic Arts Inc (EA)
Return on total capital
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 1,647,000 | 1,384,000 | 1,126,000 | 1,046,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,386,000 | 7,513,000 | 7,293,000 | 7,625,000 | 7,840,000 |
| Return on total capital | 0.00% | 21.92% | 18.98% | 14.77% | 13.34% |
March 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $6,386,000K)
= 0.00%
Electronic Arts Inc's return on total capital has shown a steady increase over the past years, starting at 13.34% as of March 31, 2021, and gradually rising to 21.92% by March 31, 2024. This indicates the company's ability to generate profits relative to the total capital employed. However, a notable drop to 0.00% as of March 31, 2025, raises concerns about the company's performance in utilizing its capital efficiently during that period. It is essential for Electronic Arts Inc to investigate the reasons behind this significant decline and implement strategies to enhance its return on total capital in the future.
Peer comparison
Mar 31, 2025