EACAUTIOUS

Return on Equity (ROE)

13.5%

Updated 173h ago

Sector Performance

49th percentile

13.5%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity — a 13.5% ROE means EA earns $0.135 for every dollar of equity invested.

That figure sits precisely at the sector median of 13.5%, placing EA in the 49th percentile among peers, so performance is roughly average for its industry. The year-over-year change is not available, but quarter-over-quarter ROE rose 3.1 percentage points from 13.1% to 13.5%. With ROE at the sector median and only a modest quarterly uptick, the combination suggests neither clear opportunity nor elevated risk — the company is keeping pace but not pulling ahead. This metric supports the overall CAUTIOUS verdict because it provides no reason to be bullish: EA's returns are merely in line with peers, and the improving trend is small and short-term.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about EA?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are EA's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.