Electronic Arts Inc (EA)
Quick ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,136,000 | 2,900,000 | 2,424,000 | 2,732,000 | 5,260,000 |
| Short-term investments | US$ in thousands | 112,000 | 362,000 | 343,000 | 330,000 | 1,106,000 |
| Receivables | US$ in thousands | 679,000 | 565,000 | 684,000 | 650,000 | 521,000 |
| Total current liabilities | US$ in thousands | 3,459,000 | 3,090,000 | 3,285,000 | 3,513,000 | 2,964,000 |
| Quick ratio | 0.85 | 1.24 | 1.05 | 1.06 | 2.32 |
March 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,136,000K
+ $112,000K
+ $679,000K)
÷ $3,459,000K
= 0.85
The quick ratio of Electronic Arts Inc has shown some fluctuations over the past five years. As of March 31, 2021, the quick ratio stood at a healthy 2.32, indicating that the company had more than enough liquid assets to cover its current liabilities. However, by March 31, 2025, the quick ratio had decreased to 0.85, signaling a potential decrease in the company's ability to meet short-term obligations with its most liquid assets.
The decreasing trend in the quick ratio from 2021 to 2025 may raise concerns about Electronic Arts Inc's short-term liquidity position. A quick ratio below 1 suggests that the company may face challenges in meeting its immediate financial obligations without relying on inventory or other less liquid assets.
It would be important for Electronic Arts Inc to closely monitor its liquidity position and consider strategies to improve its quick ratio to ensure financial stability and meet short-term obligations effectively.
Peer comparison
Mar 31, 2025