Electronic Arts Inc (EA)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	7,562,000	7,657,000	7,593,000	7,583,000	7,426,000	7,377,000	7,285,000	7,207,000	6,991,000	6,512,000	6,396,000	5,721,000	5,629,000	5,670,000	5,590,000	5,787,000	5,537,000	5,388,000	5,084,000	5,022,000
Property, plant and equipment	US$ in thousands	578,000	561,000	542,000	545,000	549,000	553,000	531,000	545,000	550,000	522,000	516,000	510,000	491,000	467,000	458,000	450,000	449,000	439,000	442,000	446,000
Fixed asset turnover		13.08	13.65	14.01	13.91	13.53	13.34	13.72	13.22	12.71	12.48	12.40	11.22	11.46	12.14	12.21	12.86	12.33	12.27	11.50	11.26

March 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,562,000K ÷ $578,000K
= 13.08

Electronic Arts Inc's fixed asset turnover ratio has shown a fluctuating trend over the past few quarters, ranging from a low of 11.22 to a high of 14.01. The fixed asset turnover measures how efficiently the company is generating revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.

The recent ratios, such as 13.08, 13.65, and 14.01, suggest that Electronic Arts Inc has been able to generate significant revenue relative to its investment in fixed assets. This indicates efficient asset utilization and effective management of the company's fixed assets. However, the variability in the ratio over the quarters may indicate changes in the company's asset base or revenue generation strategies.

Overall, a high and relatively stable fixed asset turnover ratio like the one observed for Electronic Arts Inc is a positive indicator of operational efficiency and effective asset management.