Electronic Arts Inc (EA)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,136,000 | 2,776,000 | 2,197,000 | 2,400,000 | 2,900,000 | 2,742,000 | 1,946,000 | 2,259,000 | 2,424,000 | 2,202,000 | 1,539,000 | 2,082,000 | 2,732,000 | 2,670,000 | 1,630,000 | 2,838,000 | 5,260,000 | 4,772,000 | 4,059,000 | 4,013,000 |
| Short-term investments | US$ in thousands | 112,000 | 379,000 | 366,000 | 366,000 | 362,000 | 362,000 | 359,000 | 343,000 | 343,000 | 351,000 | 335,000 | 334,000 | 330,000 | 346,000 | 342,000 | 881,000 | 1,106,000 | 1,938,000 | 1,972,000 | 1,947,000 |
| Total current liabilities | US$ in thousands | 3,459,000 | 3,104,000 | 2,787,000 | 2,468,000 | 3,090,000 | 3,280,000 | 2,788,000 | 2,800,000 | 3,285,000 | 3,113,000 | 2,561,000 | 2,833,000 | 3,513,000 | 3,630,000 | 2,577,000 | 2,471,000 | 2,964,000 | 3,492,000 | 2,485,000 | 2,568,000 |
| Cash ratio | 0.65 | 1.02 | 0.92 | 1.12 | 1.06 | 0.95 | 0.83 | 0.93 | 0.84 | 0.82 | 0.73 | 0.85 | 0.87 | 0.83 | 0.77 | 1.51 | 2.15 | 1.92 | 2.43 | 2.32 |
March 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,136,000K
+ $112,000K)
÷ $3,459,000K
= 0.65
The cash ratio of Electronic Arts Inc has fluctuated over the years, indicating the company's ability to cover its short-term liabilities with cash and cash equivalents. From June 30, 2020, to March 31, 2022, the cash ratio remained relatively stable above 1. This indicates that Electronic Arts had more than enough cash on hand to cover its short-term obligations during this period.
However, starting from June 30, 2022, the cash ratio began to decline, reaching a low of 0.65 on March 31, 2025. This downward trend suggests that Electronic Arts may be experiencing a decrease in its ability to meet its short-term liabilities solely through its available cash and cash equivalents. It could imply that the company might be investing more in growth opportunities, facing increased expenses, or experiencing a decrease in its cash reserves.
The downward trend in the cash ratio warrants further investigation into Electronic Arts' liquidity position and management of its short-term cash flows. It is important for investors and stakeholders to closely monitor these trends to assess the company's financial health and ability to meet its obligations in the future.
Peer comparison
Mar 31, 2025