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Electronic Arts (NAS:EA) Operating Margin %

: 22.43% (As of Sep. 2022)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Electronic Arts's Operating Income for the three months ended in Sep. 2022 was $427 Mil. Electronic Arts's Revenue for the three months ended in Sep. 2022 was $1,904 Mil. Therefore, Electronic Arts's Operating Margin % for the quarter that ended in Sep. 2022 was 22.43%.

Warning Sign:

Electronic Arts Inc operating margin has been in a 5-year decline. The average rate of decline per year is -8.7%.

The historical rank and industry rank for Electronic Arts's Operating Margin % or its related term are showing as below:

EA' s Operating Margin % Range Over the Past 10 Years
Min: -0.08   Med: 20.42   Max: 27.84
Current: 18.33


EA's Operating Margin % is ranked better than
76.37% of 584 companies
in the Interactive Media industry
Industry Median: 2.18 vs EA: 18.33

Electronic Arts's 5-Year Average Operating Margin % Growth Rate was -8.70% per year.

Electronic Arts's Operating Income for the three months ended in Sep. 2022 was $427 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2022 was $1,335 Mil.


Electronic Arts (NAS:EA) Operating Margin % Historical Data

The historical data trend for Electronic Arts's Operating Margin % 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.

* Premium members only.

Electronic Arts Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.84 20.40 26.19 18.58 16.15

Electronic Arts Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.62 5.70 20.00 24.96 22.43

Electronic Arts (NAS:EA) Operating Margin % Competitive Comparison

For the Electronic Gaming & Multimedia subindustry, Electronic Arts's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Electronic Arts (NAS:EA) Operating Margin % Distribution

For the Interactive Media industry and Communication Services sector, Electronic Arts's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Electronic Arts's Operating Margin % falls into.



Electronic Arts Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Electronic Arts's Operating Margin % for the fiscal year that ended in Mar. 2022 is calculated as

Operating Margin %=Operating Income (A: Mar. 2022 ) / Revenue (A: Mar. 2022 )
=1129 / 6991
=16.15 %

Electronic Arts's Operating Margin % for the quarter that ended in Sep. 2022 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2022 ) / Revenue (Q: Sep. 2022 )
=427 / 1904
=22.43 %

* 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.


Electronic Arts  (NAS:EA) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Electronic Arts Operating Margin % Related Terms

Thank you for viewing the detailed overview of Electronic Arts's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Electronic Arts (NAS:EA) Business Description

Electronic Arts logo
Address
209 Redwood Shores Parkway, Redwood City, CA, USA, 94065
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, FIFA, Battlefield, Apex Legends, Mass Effect, Dragon's Age, and Need for Speed.
Executives
Suh Chris officer: Chief Financial Officer C/O CARDLYTICS, INC. 675 PONCE DE LEON AVE. NE, STE 6000 ATLANTA GA 30308
Gonzalez Rachel A director 3150 SABRE DRIVE SOUTHLAKE TX 76092
Kelly Eric Charles officer: Chief Accounting Officer 209 REDWOOD SHORES PARKWAY REDWOOD CITY CA 94065
Bruce Kofi A director GENERAL MILLS, INC. ONE GENERAL MILLS BLVD. MINNEAPOLIS MN 55426
Bilbey Matthew officer: EVP of Strategic Growth 209 REDWOOD SHORES PARKWAY REDWOOD CITY CA 94065
Moss Kenneth A officer: Chief Technology Officer 209 REDWOOD SHORES PKWY REDWOOD CITY CA 94061
Barker Kenneth A officer: Chief Accounting Officer C/O ELECTRONIC ARTS INC. 209 REDWOOD SHORES PARKWAY REDWOOD CITY CA 94065
Linzner Joel officer: EVP Worldwide Business Affairs 209 REDWOOD SHORES PARKWAY REDWOOD CITY, CA 94065
Jorgensen Blake J officer: COO & CFO 209 REDWOOD SHORES PARKWAY REDWOOD CITY CA 94065
Probst Lawrence F Iii director 209 REDWOOD SHORES PARKWAY REDWOOD CITY CA 94065
Paul Vivek director C/O ELECTRONIC ARTS 209 REDWOOD SHORES PARKWAY REDWOOD CITY CA 94065
Bruzzo Chris officer: Chief Marketing Officer 411 FIRST AVE., SOUTH, SUITE 700 SEATTLE WA 98104
Wilson Andrew director, officer: Chief Executive Officer 209 REDWOOD SHORES PKWY REDWOOD CITY CA 94065
Warren Denise director 209 REDWOOD SHORES PKWY REDWOOD CITY CA 94065
Soderlund Patrick officer: Chief Design Officer 209 REDWOOD SHORES PKWY REDWOOD CITY CA 94065

Electronic Arts (NAS:EA) Headlines

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