Electronic Arts Inc (EA)
Payables turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,543,000 | 1,710,000 | 1,792,000 | 1,859,000 | 1,494,000 |
| Payables | US$ in thousands | 105,000 | 110,000 | 99,000 | 101,000 | 96,000 |
| Payables turnover | 14.70 | 15.55 | 18.10 | 18.41 | 15.56 |
March 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,543,000K ÷ $105,000K
= 14.70
The payables turnover ratio for Electronic Arts Inc has shown a generally increasing trend over the period from March 31, 2021, to March 31, 2025. The ratio increased from 15.56 in 2021 to 18.41 in 2022, indicating that the company's ability to efficiently manage its accounts payable improved during that period.
However, there was a slight decrease in the payables turnover ratio in 2023 to 18.10, suggesting a potential slowdown in the company's ability to pay off its suppliers in a timely manner. This could be a point of concern as a lower payables turnover ratio may indicate liquidity challenges or inefficiencies in managing payables.
Subsequently, the ratio dropped further to 15.55 in 2024 and then to 14.70 in 2025. These decreases may raise questions about Electronic Arts Inc's cash management and vendor payment policies. A declining payables turnover ratio could suggest that the company is taking longer to settle its outstanding bills with suppliers, which could strain relationships or impact its working capital management.
Overall, while the payables turnover ratio for Electronic Arts Inc has fluctuated over the years, it is essential for the company to closely monitor and improve its payables management practices to ensure efficient cash flow and maintain healthy supplier relationships.
Peer comparison
Mar 31, 2025