Electronic Arts Inc (EA)

Cash conversion cycle

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Days of inventory on hand (DOH)	days	—	—	—	—	—
Days of sales outstanding (DSO)	days	33.21	27.27	33.62	33.94	33.78
Number of days of payables	days	24.84	23.48	20.16	19.83	23.45
Cash conversion cycle	days	8.37	3.79	13.46	14.11	10.33

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 33.21 – 24.84
= 8.37

The cash conversion cycle of Electronic Arts Inc, a measure of how efficiently the company manages its cash flows related to its operating cycle, has fluctuated over the years based on the data provided.

As of March 31, 2021, the company had a cash conversion cycle of 10.33 days, indicating that it took around 10 days to convert its investments in inventory and accounts receivable into cash.

By March 31, 2022, the cash conversion cycle had increased to 14.11 days, suggesting that Electronic Arts took longer to convert its assets into cash compared to the previous year.

However, by March 31, 2023, the cash conversion cycle improved slightly to 13.46 days, showing a reduction in the time it took to convert assets into cash compared to the previous year.

On March 31, 2024, Electronic Arts achieved a significantly lower cash conversion cycle of 3.79 days, indicating a much quicker conversion of investments into cash.

In the most recent data available as of March 31, 2025, the cash conversion cycle increased to 8.37 days, which is still an improvement compared to the 2022 and 2023 figures, but higher than the exceptionally low cycle in 2024.

Overall, Electronic Arts Inc's cash conversion cycle has shown variability over the years, with some fluctuations in efficiency in converting investments into cash. It is important for the company to focus on managing its working capital effectively to optimize its cash conversion cycle and ensure smooth operations.