Electronic Arts (FRA:ERT) ROCE % : 15.19% (As of Dec. 2023)

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What is Electronic Arts ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Electronic Arts's annualized ROCE % for the quarter that ended in Dec. 2023 was 15.19%.

Electronic Arts ROCE % Historical Data

The historical data trend for Electronic Arts's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Electronic Arts ROCE % Chart

Electronic Arts Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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18.28

20.70

10.93

11.48

13.72

Electronic Arts Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															10.92	7.67	21.11	15.82	15.19

Electronic Arts ROCE % Calculation

Electronic Arts's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	1292.656	/	( ( (12530.4 - 3189.804)	+	(12570.706 - 3068.19) )	/ 2 )
	=	1292.656	/	( (9340.596	+	9502.516)	/ 2 )
	=	1292.656	/	9421.556
	=	13.72 %

Electronic Arts's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	1456.196	/	( ( (12311.243 - 2612.356)	+	(12486.789 - 3007.76) )	/ 2 )
	=	1456.196	/	( ( 9698.887	+	9479.029 )	/ 2 )
	=	1456.196	/	9588.958
	=	15.19 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Electronic Arts (FRA:ERT) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Electronic Arts ROCE % Related Terms

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Electronic Arts (FRA:ERT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Electronic Arts Inc (FRA:ERT) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

EA:USA EA:Mexico 1EA:Italy ERT:Germany ERT:Germany ERT:Germany EAIN34:Brazil

Address

209 Redwood Shores Parkway, Redwood City, CA, USA, 94065

Website

https://www.ea.com

EA is one of the world's largest third-party video game publishers and has transitioned from a console-based video game publisher to the one of the largest publishers on consoles, PC, and mobile. The firm owns number of large franchises, including Madden, EA Sports FC, Battlefield, Apex Legends, Mass Effect, Dragon's Age, and Need for Speed.

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