Market Cap : 42.32 B | Enterprise Value : 37.37 B | P/E (TTM) : 32.52 | P/B : 5.30 |
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Net margin is calculated as Net Income divided by its Revenue. Electronic Arts's Net Income for the three months ended in Sep. 2020 was $185 Mil. Electronic Arts's Revenue for the three months ended in Sep. 2020 was $1,151 Mil. Therefore, Electronic Arts's net margin for the quarter that ended in Sep. 2020 was 16.07%.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
* The bar in red indicates where Electronic Arts's Net Margin % falls into.
Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.
Electronic Arts's Net Margin for the fiscal year that ended in Mar. 2020 is calculated as
Net Margin | = | Net Income (A: Mar. 2020 ) | / | Revenue (A: Mar. 2020 ) |
= | 3039 | / | 5537 | |
= | 54.89 % |
Electronic Arts's Net Margin for the quarter that ended in Sep. 2020 is calculated as
Net Margin | = | Net Income (Q: Sep. 2020 ) | / | Revenue (Q: Sep. 2020 ) |
= | 185 | / | 1151 | |
= | 16.07 % |
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
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