Electronic Arts Inc (EA)

Current ratio

Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Total current assets US$ in thousands 3,276,000 4,247,000 3,969,000 4,151,000 7,213,000
Total current liabilities US$ in thousands 3,459,000 3,090,000 3,285,000 3,513,000 2,964,000
Current ratio 0.95 1.37 1.21 1.18 2.43

March 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,276,000K ÷ $3,459,000K
= 0.95

The current ratio of Electronic Arts Inc has exhibited fluctuations over the past five years. As of March 31, 2021, the current ratio stood at a healthy 2.43, indicating a strong ability to cover its short-term obligations with current assets. However, this ratio decreased significantly to 1.18 by March 31, 2022, suggesting a potential decrease in liquidity or an increase in short-term liabilities relative to current assets.

Subsequently, the current ratio improved slightly to 1.21 as of March 31, 2023, indicating a slight strengthening of the company's ability to meet its short-term obligations. By March 31, 2024, the current ratio further increased to 1.37, signaling improved liquidity and a more robust ability to cover short-term liabilities.

However, there was a notable decline in the current ratio to 0.95 as of March 31, 2025, which may raise concerns about Electronic Arts Inc's short-term liquidity position. This drop could be attributed to a significant increase in short-term liabilities or a decrease in current assets during the period.

Overall, Electronic Arts Inc's current ratio has shown variability in recent years, with fluctuations impacting its liquidity position. It would be essential for stakeholders to monitor future trends in the current ratio to assess the company's ability to meet its short-term financial obligations effectively.