Electronic Arts Inc (EA)
Cash conversion cycle
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 33.24 | 36.90 | 49.90 | 21.68 | 27.27 | 41.33 | 50.33 | 24.89 | 33.62 | 41.36 | 46.04 | 29.32 | 33.94 | 54.09 | 58.84 | 35.54 | 33.78 | 50.08 | 27.62 | 31.98 |
| Number of days of payables | days | 24.57 | 18.57 | 37.49 | 17.54 | 22.90 | 12.57 | 30.15 | 14.83 | 20.16 | 12.84 | 27.19 | 13.75 | 19.83 | 17.85 | 28.71 | 17.52 | 23.45 | 22.50 | 44.31 | 12.66 |
| Cash conversion cycle | days | 8.67 | 18.33 | 12.42 | 4.14 | 4.37 | 28.76 | 20.18 | 10.06 | 13.46 | 28.53 | 18.86 | 15.57 | 14.11 | 36.24 | 30.13 | 18.02 | 10.33 | 27.59 | -16.69 | 19.31 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 33.24 – 24.57
= 8.67
The cash conversion cycle of Electronic Arts Inc has shown varying trends over the years. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From June 2020 to September 2020, the cash conversion cycle was negative, indicating that the company was able to convert its resources into cash faster than incurring new obligations. This is a positive sign as it shows efficient management of working capital during this period.
However, the cycle turned positive in December 2020 and fluctuated in the following quarters, reaching its peak at 36.24 days by December 2021. This increase may indicate slower cash conversion efficiency and potential liquidity challenges for the company during this period.
From there on, the cycle gradually decreased, hitting a low of 4.14 days by June 2024 before slightly bouncing back to 8.67 days by March 2025. The declining trend in the cash conversion cycle suggests improved efficiency in managing working capital and a faster conversion of resources into cash during these quarters.
Overall, monitoring the cash conversion cycle is crucial for understanding how effectively Electronic Arts Inc manages its working capital and cash flow operations, highlighting areas that may need attention to improve liquidity and operational efficiency.
Peer comparison
Mar 31, 2025