Electronic Arts Inc (EA)

Liquidity ratios

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
Current ratio 1.37 1.33 1.38 1.28 1.21 1.23 1.34 1.24 1.18 1.20 1.32 1.89 2.43 2.21 2.75 2.61 2.45 2.84 3.32 3.52
Quick ratio 1.24 1.21 1.20 1.17 1.05 1.09 1.09 1.06 1.06 1.10 1.17 1.73 2.32 2.14 2.60 2.52 2.33 2.74 3.16 3.34
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

Electronic Arts Inc has shown fluctuating liquidity ratios over the past few quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 1, indicating a healthy liquidity position. However, it has varied from a low of 1.18 to a high of 2.75 over the period shown.

The quick ratio, a more stringent measure of liquidity, considers only the most liquid assets (excluding inventory) to cover current liabilities. This ratio has also shown fluctuations but has generally been above 1, suggesting that Electronic Arts Inc has a good ability to meet its short-term obligations without relying on inventory.

The cash ratio, which is the most conservative liquidity measure since it only includes cash and cash equivalents to cover current liabilities, has also fluctuated over time. Despite some variability, the company has consistently maintained ratios above 1, indicating that it has sufficient cash reserves to meet its short-term obligations.

Overall, while there have been fluctuations in Electronic Arts Inc's liquidity ratios, the company has generally maintained a strong liquidity position, with the ability to meet its short-term obligations comfortably. Further monitoring of these ratios will be necessary to assess the company's ongoing liquidity performance.

Additional liquidity measure

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 conversion cycle days 3.79 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 12.26 37.88 19.29 8.12

The cash conversion cycle of Electronic Arts Inc has shown fluctuations over the past few quarters. The trend indicates that the company has been successful in managing its working capital efficiently. The cash conversion cycle is a measure of the time it takes for a company to convert its investments in inventory and accounts receivable into cash flows from sales.

Looking at the data provided, we observe that the cash conversion cycle peaked at 36.24 days in Dec 2021, indicating a slower conversion of inventory and accounts receivable into cash during that period. Subsequently, the company managed to significantly reduce the cycle to -16.69 days in Sep 2020, suggesting a more efficient management of working capital, possibly driven by improved inventory management or faster collection of accounts receivable.

Overall, the company's cash conversion cycle has generally been positive, with fluctuations observed throughout the quarters. A lower cash conversion cycle indicates quicker conversion of investments into cash, reflecting positively on the company's efficiency in managing its working capital. It is essential for Electronic Arts Inc to continue monitoring and managing its cash conversion cycle effectively to ensure optimal cash flow and working capital management.