Electronic Arts Inc (EA)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,647,000 | 1,569,000 | 1,468,000 | 1,505,000 | 1,384,000 | 1,559,000 | 1,368,000 | 1,267,000 | 1,139,000 | 945,000 | 1,096,000 | 905,000 | 1,062,000 | 1,311,000 | 1,439,000 | 1,584,000 | 1,552,000 | 1,357,000 | 1,249,000 | 1,241,000 |
| Long-term debt | US$ in thousands | 1,882,000 | 1,881,000 | 1,881,000 | 1,880,000 | 1,880,000 | 1,879,000 | 1,879,000 | 1,878,000 | 1,878,000 | 1,878,000 | 1,877,000 | 1,877,000 | 1,876,000 | 397,000 | 397,000 | 397,000 | 397,000 | 995,000 | 995,000 | 995,000 |
| 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 |
| Return on total capital | 17.53% | 16.67% | 15.52% | 16.33% | 15.09% | 16.53% | 14.14% | 13.31% | 11.99% | 9.93% | 11.26% | 9.42% | 10.93% | 16.14% | 16.99% | 19.37% | 19.75% | 16.48% | 15.32% | 16.59% |
March 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 been fluctuating over the past several quarters, ranging from a low of 9.42% in December 2021 to a high of 19.75% in March 2020. The company's return on total capital for the most recent quarter, ending March 31, 2024, stood at 17.53%, reflecting a healthy profitability relative to the capital invested in the business. Overall, the trend shows a general improvement in return on total capital over the period under review, with some variability from quarter to quarter. This indicates that Electronic Arts has been efficient in generating returns on the total capital employed in its operations over time. However, it is important for investors to continue monitoring this metric to ensure sustained profitability and efficient capital allocation by the company.
Peer comparison
Mar 31, 2024