Electronic Arts Inc (EA)

Short-term

Turnover ratios

Inventory turnover was not provided in the data. Receivables turnover for Electronic Arts Inc has shown consistency over the past five years, indicating the company's ability to efficiently collect outstanding customer payments. Payables turnover has also been relatively steady, reflecting how quickly the company pays its suppliers.

Working capital turnover demonstrates how effectively Electronic Arts Inc utilizes its working capital to generate sales. The significant increase in 2024 compared to the previous years suggests a more efficient use of working capital to drive revenue.

Overall, the activity ratios reflect Electronic Arts Inc's efficient management of its assets and liabilities to support its operational activities and generate revenue.

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Average number of days

The Days of Inventory on Hand (DOH) ratio for Electronic Arts Inc is not provided in the data table. This ratio indicates the average number of days it takes for the company to sell its inventory. Without this data, we cannot assess the efficiency of Electronic Arts in managing its inventory levels.

The Days of Sales Outstanding (DSO) ratio for Electronic Arts has shown variability over the years. In the most recent fiscal year, 2024, the DSO was 27.27 days, indicating that on average, it takes approximately 27 days for the company to collect its accounts receivable. This represents an improvement compared to the previous years.

The Number of Days of Payables ratio also fluctuated for Electronic Arts over the years. In 2024, the company took around 23.48 days to pay its payables. This ratio has increased compared to the previous years, suggesting that Electronic Arts is taking longer to pay its suppliers.

In terms of activity ratios, the DSO and Days of Payables ratios show how efficiently Electronic Arts manages its receivables and payables, respectively. A lower DSO is generally preferred as it implies faster collection of accounts receivable, while a higher Days of Payables ratio could suggest better cash flow management but may also indicate strained relationships with suppliers.

Overall, Electronic Arts Inc should continue to monitor and potentially optimize its activity ratios to improve its working capital management and operational efficiency.

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Long-term

In terms of Electronic Arts Inc's long-term activity ratios, the fixed asset turnover has shown a slight decrease over the past five years, from 13.53 in 2023 to 13.08 in 2024. This indicates that the company generates approximately $13.08 in sales for every dollar invested in fixed assets, showcasing the efficiency of utilizing fixed assets to generate revenue.

Meanwhile, the total asset turnover has displayed a more significant improvement over the same period, increasing from 0.50 in 2020 to 0.56 in 2024. This suggests that Electronic Arts Inc has been more effective in generating revenue relative to its total assets in recent years, as the company now generates $0.56 in sales for every dollar invested in total assets.

Overall, the trends in both fixed asset turnover and total asset turnover ratios indicate that Electronic Arts Inc has been efficiently utilizing its assets to generate revenue, with a notable improvement in total asset turnover efficiency compared to fixed asset turnover efficiency over the analyzed period.