Electronic Arts Inc (EA)

Short-term

Turnover ratios

Electronic Arts Inc's activity ratios provide insight into how efficiently the company is managing its assets and liabilities.

1. Inventory Turnover: Unfortunately, no data is available for the inventory turnover ratio for all the years. This ratio indicates how many times a company sells and replaces its inventory during a specific period. The absence of data may suggest that Electronic Arts does not hold significant inventory relative to its sales.

2. Receivables Turnover: The receivables turnover ratio measures how efficiently a company collects payments from its customers. Electronic Arts' receivables turnover has been relatively stable over the years, with values ranging from 10.76 to 13.38. This consistency suggests that the company has been successful in collecting payments from its customers in a timely manner.

3. Payables Turnover: The payables turnover ratio evaluates how quickly a company pays its suppliers. Electronic Arts' payables turnover has shown a slight decline from 18.41 in 2022 to 14.70 in 2025. This decrease indicates that the company is taking longer to pay its suppliers, which could be due to changing payment terms or other factors.

4. Working Capital Turnover: The working capital turnover ratio indicates how efficiently a company utilizes its working capital to generate sales. Electronic Arts' working capital turnover has shown significant fluctuations, with a notable increase from 1.32 in 2021 to 10.96 in 2022. Subsequently, the ratio decreased to 6.54 in 2024 and data is not available for 2025. These fluctuations may signal changes in the company's working capital management practices or business operations.

In conclusion, while Electronic Arts has demonstrated effective receivables turnover and varying trends in payables turnover and working capital turnover, the absence of data for inventory turnover limits a comprehensive analysis of the company's overall activity efficiency.

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Average number of days

Electronic Arts Inc activity ratios reflect its efficiency in managing inventory, collecting receivables, and paying suppliers.

1. Days of Inventory on Hand (DOH):
- Data shows "— days" for all years, indicating that the specific information on the average number of days Electronic Arts holds inventory was not available. This could be due to the nature of the company's industry or accounting practices.

2. Days of Sales Outstanding (DSO):
- DSO measures the average number of days it takes for Electronic Arts to collect payment after making a sale. The trend over the years shows:
- March 31, 2021: 33.78 days
- March 31, 2022: 33.94 days
- March 31, 2023: 33.62 days
- March 31, 2024: 27.27 days
- March 31, 2025: 33.21 days
- Generally, a lower DSO indicates more efficient credit management and quicker cash conversion from sales.

3. Number of Days of Payables:
- This ratio represents how long Electronic Arts takes to pay its suppliers. The data reveals:
- March 31, 2021: 23.45 days
- March 31, 2022: 19.83 days
- March 31, 2023: 20.16 days
- March 31, 2024: 23.48 days
- March 31, 2025: 24.84 days
- A decrease in the number of days of payables suggests that the company is paying its suppliers more quickly, impacting its working capital management.

Analyzing these ratios collectively gives insight into Electronic Arts' operational efficiency and financial health through its inventory management, receivables collection, and payables practices.

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Long-term

Electronic Arts Inc's long-term activity ratios show positive trends over the years.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue.
- Electronic Arts Inc's fixed asset turnover has been steadily increasing from 11.46 in 2021 to 13.53 in 2023, indicating improved efficiency in generating sales from its fixed assets.
- The absence of data for 2024 and 2025 prevents a direct comparison, but the increasing trend suggests a positive operational performance in utilizing fixed assets.

2. Total Asset Turnover:
- The total asset turnover ratio measures how effectively the company is using its total assets to generate revenue.
- Electronic Arts Inc's total asset turnover has also shown a consistent upward trend from 0.42 in 2021 to 0.60 in 2025.
- This indicates that the company is becoming more efficient in generating sales relative to its total asset base over the years.

In conclusion, both the fixed asset turnover and total asset turnover ratios for Electronic Arts Inc are improving, demonstrating the company's ability to generate more revenue from its assets efficiently, which is a positive sign for its long-term financial performance.