Electronic Arts Inc (EA)
Cash ratio
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,900,000 | 2,742,000 | 1,946,000 | 2,424,000 | 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 | 3,768,000 | 3,603,000 | 2,940,000 | 3,533,000 |
| Short-term investments | US$ in thousands | 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 | 1,967,000 | 1,999,000 | 1,943,000 | 1,654,000 |
| Total current liabilities | US$ in thousands | 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 | 2,664,000 | 2,338,000 | 1,818,000 | 1,650,000 |
| Cash ratio | 1.06 | 0.95 | 0.83 | 0.99 | 0.84 | 0.82 | 0.73 | 0.85 | 0.87 | 0.83 | 0.77 | 1.51 | 2.15 | 1.92 | 2.43 | 2.32 | 2.15 | 2.40 | 2.69 | 3.14 |
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 of Electronic Arts Inc has shown fluctuations over the past several quarters. The cash ratio measures the company's ability to cover its short-term liabilities using only its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
From December 2019 to March 2021, the cash ratio was consistently high, peaking at 3.14 in September 2020. This indicates that Electronic Arts Inc had a substantial amount of liquid assets relative to its short-term liabilities during this period.
However, starting from the June 2021 quarter, the cash ratio saw a significant decline, reaching its lowest point of 0.73 in September 2022. This downward trend continued until March 2023, reflecting a decrease in the company's liquidity position relative to its short-term obligations.
In the subsequent quarters, the cash ratio began to improve, reaching 1.06 in March 2024. While still below the levels seen in the earlier period, this increase suggests that Electronic Arts Inc has been able to strengthen its liquidity position compared to the recent lows.
Overall, the fluctuation in Electronic Arts Inc's cash ratio indicates varying levels of liquidity and the company's ability to meet its short-term liabilities with available cash and cash equivalents.
Peer comparison
Mar 31, 2024