Electronic Arts Inc (EA)

Working capital turnover

Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Revenue US$ in thousands 7,463,000 7,562,000 7,426,000 6,991,000 5,629,000
Total current assets US$ in thousands 3,276,000 4,247,000 3,969,000 4,151,000 7,213,000
Total current liabilities US$ in thousands 3,459,000 3,090,000 3,285,000 3,513,000 2,964,000
Working capital turnover 6.54 10.86 10.96 1.32

March 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,463,000K ÷ ($3,276,000K – $3,459,000K)
= —

The working capital turnover ratio measures how effectively a company utilizes its working capital to generate revenue. In the case of Electronic Arts Inc, the working capital turnover has shown significant fluctuations over the years.

In March 2021, the working capital turnover was 1.32, indicating that the company generated $1.32 of revenue for every dollar of working capital invested. This ratio then saw a considerable improvement in the subsequent years, reaching 10.96 in March 2022 and maintaining a similar level of efficiency with a ratio of 10.86 in March 2023.

However, there was a noticeable decline in the working capital turnover in March 2024, dropping to 6.54. This decrease suggests that Electronic Arts Inc may have experienced challenges in efficiently utilizing its working capital to generate revenue during that period.

Unfortunately, the data for March 31, 2025, is not available to provide a complete analysis of the trend. It would be advisable for stakeholders to monitor the company's working capital turnover closely in future periods to assess its operational efficiency and financial health.