[ad_1]
For investors, an increase in profitability and a performance superior to that of the sector can be essential considerations in an investment. I will review below the performance history of Electronic Arts Inc. (NASDAQ: EA) to give you an idea of the company's performance relative to its long-term trend and to peers.
See our latest badysis for Electronic Arts
Comment on the past performance of EA
Revenue for the last twelve months of EA ($ 1.4 billion) (as of December 31, 2018) was
jumped 41% over the previous year.
In addition, this one-year growth rate exceeded its five-year annual growth average of 23%, indicating that EA's growth rate has accelerated.
What is the engine of this growth?
Let's see
that it behaves
he is
only
the result of
wind of the industry,
or if Electronic Arts has
seen
a growth specific to the company.
In terms of return on investment, Electronic Arts has
invested well in its equity funds, generating a return on equity of 27%, above the reasonable minimum of 20%.
In addition, its return on badets (ROA) of 16% exceeds that of the US entertainment industry, 7.0%, which indicates that Electronic Arts has used its badets more efficiently.
Finally, its return on capital (OCR), which also represents Electronic Arts' level of indebtedness, has risen over the past three years, from 23% to 23%.
This corresponds to a decrease in debt, the debt / equity ratio having risen from 29% to 19% over the last 5 years.
What does it mean?
The Electronic Arts experience can be a valuable insight into its results, but it certainly does not tell the whole story.
Although Electronic Arts has a good historical reputation with positive growth and profitability, it is not certain that this will be extrapolated into the future.
You should
keep looking for Electronic Arts to get a
best picture
from stock watching:
- Future prospects: What do well-informed industry badysts predict for EA's future growth? Check out our free research report on badyst consensus regarding EA's outlook.
- Financial health: Are EA's activities financially viable? Balance sheets can be difficult to badyze, which is why we have done it for you. Check out our financial health check here.
- Other performing stocks: Are there other stocks offering better prospects with proven track records? Explore our free list of these large stocks here.
NB: The figures in this article are calculated using data from the last twelve months as of December 31, 2018. This may not correspond to the figures in the annual reports for the entire year. .
Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.
If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.
Daniel Loeb has achieved an annualized return of 16.2% over the last 20 years. What is he holding today?
Founder of the Third Point Hedge Fund, an event-driven hedge fund, Daniel Loeb is one of the most successful activist investors in the market. Explore the main holdings of his portfolio, see how he diversifies his investments, past performance and growth estimates. Click here to view a FREE Detailed Infographic Analysis of Daniel Loeb's Investment Portfolio.
Source link
