Electronic Arts Inc (EA)

Days of sales outstanding (DSO)

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Receivables turnover		13.38	8.83	7.25	14.67	10.86	8.82	7.93	12.45	10.76	6.75	6.20	10.27	10.80	7.29	13.22	11.41	12.01	6.75	5.94	15.26
DSO	days	27.27	41.33	50.33	24.89	33.62	41.36	46.04	29.32	33.94	54.09	58.84	35.54	33.78	50.08	27.62	31.98	30.39	54.06	61.46	23.91

March 31, 2024 calculation

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

Days Sales Outstanding (DSO) is a financial metric that indicates how efficiently a company is managing its accounts receivable. It measures the average number of days it takes for a company to collect payment after making a sale.

Analyzing the DSO trend of Electronic Arts Inc over the past few quarters, we can observe fluctuations in the collection period. In the most recent quarter ending March 31, 2024, the DSO stood at 27.27 days, showing an improvement compared to the previous quarter's 41.33 days.

Looking at the historical data, the company's DSO has varied significantly, ranging from a low of 23.91 days to a high of 61.46 days over the last few periods. This variability suggests potential challenges in efficiently collecting receivables and managing cash flows.

A decreasing trend in DSO indicates that the company is collecting payments more quickly, which is generally a positive sign as it potentially reflects effective accounts receivable management. Conversely, an increasing DSO could imply issues with customer credit or collection practices.

Therefore, Electronic Arts Inc should continue monitoring its DSO closely to ensure timely collection of accounts receivable and maintain healthy cash flow operations. The company may need to implement strategies to shorten the collection period and enhance overall liquidity management.