Electronic Arts Inc (EA)

Days of sales outstanding (DSO)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Receivables turnover		13.38	10.86	10.76	10.80	12.01
DSO	days	27.27	33.62	33.94	33.78	30.39

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.38
= 27.27

The Days of Sales Outstanding (DSO) ratio for Electronic Arts Inc has shown a decreasing trend over the past five years, indicating an improvement in the company's ability to collect its accounts receivable in a timely manner.

In particular, as of March 31, 2024, the DSO stands at 27.27 days, which is lower compared to the previous four years. This suggests that Electronic Arts has been more efficient in converting its accounts receivable into cash during the most recent fiscal year.

Overall, the decreasing trend in DSO is a positive indicator of Electronic Arts' effective management of its accounts receivable and liquidity position. It implies that the company has been able to streamline its credit and collection processes, resulting in quicker cash inflows and potentially stronger financial performance.