Electronic Arts Inc (EA)
Payables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,710,000 | 1,792,000 | 1,859,000 | 1,494,000 | 1,369,000 |
| Payables | US$ in thousands | 110,000 | 99,000 | 101,000 | 96,000 | 68,000 |
| Payables turnover | 15.55 | 18.10 | 18.41 | 15.56 | 20.13 |
March 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,710,000K ÷ $110,000K
= 15.55
The payables turnover ratio for Electronic Arts Inc has shown fluctuations over the past five years. The company's payables turnover ratio was 15.55 times in March 31, 2024, compared to 18.10 times in March 31, 2023, 18.41 times in March 31, 2022, 15.56 times in March 31, 2021, and 20.13 times in March 31, 2020.
A higher payables turnover ratio indicates that the company is managing its accounts payable effectively, paying off its suppliers more frequently within the year. This may suggest good liquidity management and potential negotiation power with suppliers.
On the other hand, a lower payables turnover ratio could indicate that the company is taking longer to pay off its suppliers, which may be a strategic decision for cash flow management or could signal potential liquidity issues.
Overall, while Electronic Arts Inc's payables turnover ratio has fluctuated, further analysis, in conjunction with other financial ratios and information, is needed to gain a more comprehensive understanding of the company's financial performance and position.
Peer comparison
Mar 31, 2024