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Fifa 22 beta9/18/2023 We see that Electronic Arts is more profitable and has a better financial position.Income Tax Calculator: Estimate Your Taxes Looking at financial risk, Electronic Arts fares better, with its 5% debt as a percentage of equity lower than 13% for Take-Two Interactive, and its 21% cash as a percentage of assets is also higher than 6% for the latter, implying that EA has a better debt position and more cash cushion.Electronic Arts’ free cash flow margin of 21% is much better than Our Electronic Arts Operating Income Comparison and Take-Two Interactive Operating Income Comparison dashboards have more details.The sharp decline in Take-Two Interactive’s operating margin can be attributed to higher marketing costs and some one-off costs related to the Zynga acquisition.Electronic Arts’ reported operating margin slid from 26.1% in 2019 to 17.9% in fiscal 2023 (fiscal ends in March), while Take-Two Interactive’s operating margin fell from 13.8% to -21.8% over the same period (Take-Two Interactive’s fiscal also ends in March).For companies registering positive revenue growth during Covid, we consider yearly average growth before Covid with a certain weight to growth during Covid and the last twelve months.Īnnual Growth Forecast - EA vs. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. For companies negatively affected by Covid, we consider the quarterly revenue recovery trajectory to forecast recovery to the pre-Covid revenue run rate. Note that we have different methodologies for companies that are negatively impacted by Covid and those that are not impacted or positively impacted by Covid while forecasting future revenues.It points to a CAGR of 4.4% for Electronic Arts and 18.9% for Take-Two Interactive, based on Trefis Machine Learning analysis. The table below summarizes our revenue expectations for the two companies over the next three years.The new game in the franchise is likely to surpass this figure in fewer years. Its predecessor - GTA 5 - has sold 180 million copies since its release in 2013, garnering close to $8 billion thus far.
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