Electronic Arts Inc (EA)

Working capital turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	7,562,000	7,426,000	6,991,000	5,629,000	5,537,000
Total current assets	US$ in thousands	4,247,000	3,969,000	4,151,000	7,213,000	6,517,000
Total current liabilities	US$ in thousands	3,090,000	3,285,000	3,513,000	2,964,000	2,664,000
Working capital turnover		6.54	10.86	10.96	1.32	1.44

March 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,562,000K ÷ ($4,247,000K – $3,090,000K)
= 6.54

Over the past five years, Electronic Arts Inc's working capital turnover ratio has experienced fluctuations. In the most recent fiscal year, ending on March 31, 2024, the company's working capital turnover ratio stood at 6.54, indicating that the company generated $6.54 in net sales revenue for every dollar of working capital invested.

Compared to the previous year, where the ratio was 10.86, there has been a significant decline in the efficiency of Electronic Arts Inc in utilizing its working capital to generate sales. However, it is worth noting that in the fiscal years 2022 and 2023, the working capital turnover ratios were relatively high at 10.96 and 10.86, respectively, suggesting that the company efficiently managed its working capital during those periods.

The lower working capital turnover ratio in fiscal year 2021 (1.32) and fiscal year 2020 (1.44) indicates that Electronic Arts Inc was less effective in converting its working capital into sales revenue during those years.

Overall, Electronic Arts Inc's working capital turnover ratio has shown fluctuations, indicating varying levels of efficiency in utilizing its working capital to drive sales over the past five years. It is essential for the company to monitor and manage its working capital efficiently to ensure optimal operational performance and financial health.