Electronic Arts Inc (EA)
Cash ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,900,000 | 2,424,000 | 2,732,000 | 5,260,000 | 3,768,000 |
| Short-term investments | US$ in thousands | 362,000 | 343,000 | 330,000 | 1,106,000 | 1,967,000 |
| Total current liabilities | US$ in thousands | 3,090,000 | 3,285,000 | 3,513,000 | 2,964,000 | 2,664,000 |
| Cash ratio | 1.06 | 0.84 | 0.87 | 2.15 | 2.15 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,900,000K
+ $362,000K)
÷ $3,090,000K
= 1.06
The cash ratio is a liquidity ratio that helps assess a company's ability to cover its short-term liabilities with its available cash and cash equivalents. Looking at the trend of Electronic Arts Inc's cash ratio over the past five years, we see fluctuations.
In the most recent fiscal year (ending March 31, 2024), Electronic Arts Inc had a cash ratio of 1.06, indicating that the company had $1.06 of cash and cash equivalents for every $1 of current liabilities. This suggests the company has a strong liquidity position to meet its short-term obligations.
Comparing this to the prior year, we observe an improvement from 0.84 in March 2023 to 1.06 in March 2024, indicating an increase in liquidity. However, the cash ratio in March 2024 is still lower than in March 2021 when it was 2.15. This may suggest that Electronic Arts Inc had a relatively higher level of liquidity two years ago compared to the most recent year.
Overall, while the cash ratio fluctuated over the past five years for Electronic Arts Inc, the current ratio of 1.06 as of March 31, 2024, indicates a healthy liquidity position, with the company having enough cash to cover its short-term liabilities.
Peer comparison
Mar 31, 2024