Electronic Arts Inc (EA)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,900,000 | 2,424,000 | 2,732,000 | 5,260,000 | 3,768,000 |
| Short-term investments | US$ in thousands | 362,000 | 343,000 | 330,000 | 1,106,000 | 1,967,000 |
| Receivables | US$ in thousands | 565,000 | 684,000 | 650,000 | 521,000 | 461,000 |
| Total current liabilities | US$ in thousands | 3,090,000 | 3,285,000 | 3,513,000 | 2,964,000 | 2,664,000 |
| Quick ratio | 1.24 | 1.05 | 1.06 | 2.32 | 2.33 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,900,000K
+ $362,000K
+ $565,000K)
÷ $3,090,000K
= 1.24
The quick ratio of Electronic Arts Inc over the past five years shows fluctuations. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. In the most recent year, as of March 31, 2024, the quick ratio was 1.24, indicating that the company had $1.24 of liquid assets available to cover each dollar of current liabilities.
Comparing this to the previous years, we see a lower quick ratio in 2023 and 2022 at 1.05 and 1.06 respectively, suggesting a slight decrease in liquidity during those periods. The significant increase in the quick ratio in 2021 to 2.32, and in 2020 to 2.33, indicates a strong liquidity position in those years, with substantially more liquid assets to cover short-term obligations.
Overall, although the quick ratio has fluctuated over the years, Electronic Arts Inc has generally demonstrated a healthy ability to cover its short-term liabilities with liquid assets. It is important for investors and stakeholders to monitor this ratio to assess the company's short-term liquidity position and financial health.
Peer comparison
Mar 31, 2024