Electronic Arts Inc (EA)
Return on total capital
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,199,000 | 1,474,000 | 1,419,000 | 1,414,000 | 1,591,000 | 1,512,000 | 1,458,000 | 1,495,000 | 1,393,000 | 1,556,000 | 1,350,000 | 1,245,000 | 1,126,000 | 942,000 | 1,088,000 | 897,000 | 1,046,000 | 1,272,000 | 1,384,000 | 1,530,000 |
Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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 |
Return on total capital | 18.78% | 19.89% | 19.15% | 19.11% | 21.18% | 20.07% | 19.25% | 20.38% | 19.10% | 20.61% | 17.31% | 16.29% | 14.77% | 12.37% | 13.85% | 11.61% | 13.34% | 15.97% | 17.14% | 19.66% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,199,000K ÷ ($—K + $6,386,000K)
= 18.78%
Electronic Arts Inc's return on total capital has shown some fluctuations over the period analyzed. Starting at 19.66% in June 2020, the return decreased to 11.61% in June 2021 before gradually increasing to reach a peak of 21.18% in March 2024. Subsequently, the return decreased slightly to 18.78% in March 2025. Overall, the return on total capital has generally been above 15% throughout the period, indicating that Electronic Arts Inc has been efficient in generating profits relative to its total capital employed. However, stakeholders should continue to monitor the trend to ensure sustained profitability and efficient capital utilization.
Peer comparison
Mar 31, 2025