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.