Electronic Arts Inc (EA)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,710,000 | 1,801,000 | 1,840,000 | 1,846,000 | 1,792,000 | 1,763,000 | 1,826,000 | 1,858,000 | 1,859,000 | 1,759,000 | 1,729,000 | 1,521,000 | 1,494,000 | 1,444,000 | 1,351,000 | 1,470,000 | 1,369,000 | 1,376,000 | 1,281,000 | 1,294,000 |
| Payables | US$ in thousands | 110,000 | 62,000 | 152,000 | 75,000 | 99,000 | 62,000 | 136,000 | 70,000 | 101,000 | 86,000 | 136,000 | 73,000 | 96,000 | 89,000 | 164,000 | 51,000 | 68,000 | 61,000 | 148,000 | 56,000 |
| Payables turnover | 15.55 | 29.05 | 12.11 | 24.61 | 18.10 | 28.44 | 13.43 | 26.54 | 18.41 | 20.45 | 12.71 | 20.84 | 15.56 | 16.22 | 8.24 | 28.82 | 20.13 | 22.56 | 8.66 | 23.11 |
March 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,710,000K ÷ $110,000K
= 15.55
The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating the number of times accounts payable are paid off within a specific period. A higher payables turnover ratio indicates that a company is paying off its suppliers more quickly.
Analyzing the payables turnover ratios of Electronic Arts Inc over the provided quarters, we can see fluctuations in the ratio over time. In the most recent quarter ending March 31, 2024, the payables turnover was 15.55, indicating that Electronic Arts Inc pays off its suppliers approximately 15.55 times a year. This ratio has decreased compared to the previous quarter, where it was 29.05.
Looking at the trend over the past several quarters, we observe variations in the payables turnover ratio. In some quarters, such as December 31, 2022, and December 31, 2019, the ratio was relatively high, indicating a more efficient management of payables. In contrast, in quarters like September 30, 2020, and September 30, 2019, the payables turnover ratio was lower, suggesting a slower payment of accounts payable.
Overall, fluctuations in the payables turnover ratio can be influenced by various factors such as changes in payment terms with suppliers, company cash flow situations, and overall business operations. It is crucial for stakeholders to closely monitor this ratio to assess the company's ability to manage its payable obligations effectively.
Peer comparison
Mar 31, 2024