Electronic Arts Inc (EA)
Quick ratio
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,136,000 | 2,776,000 | 2,197,000 | 2,400,000 | 2,900,000 | 2,742,000 | 1,946,000 | 2,259,000 | 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 |
| Short-term investments | US$ in thousands | 112,000 | 379,000 | 366,000 | 366,000 | 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 |
| Receivables | US$ in thousands | 679,000 | 742,000 | 1,012,000 | 433,000 | 565,000 | 867,000 | 1,047,000 | 517,000 | 684,000 | 836,000 | 919,000 | 579,000 | 650,000 | 965,000 | 1,031,000 | 557,000 | 521,000 | 778,000 | 423,000 | 507,000 |
| Total current liabilities | US$ in thousands | 3,459,000 | 3,104,000 | 2,787,000 | 2,468,000 | 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 |
| Quick ratio | 0.85 | 1.26 | 1.28 | 1.30 | 1.24 | 1.21 | 1.20 | 1.11 | 1.05 | 1.09 | 1.09 | 1.06 | 1.06 | 1.10 | 1.17 | 1.73 | 2.32 | 2.14 | 2.60 | 2.52 |
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 fluctuated over the years, indicating changes in the company's ability to meet its short-term obligations using its most liquid assets. As of March 31, 2025, the quick ratio stands at 0.85, which suggests that Electronic Arts may face challenges in quickly covering its current liabilities with its most liquid assets.
It's worth noting that the quick ratio has shown a declining trend since June 30, 2021, which may raise concerns about the company's liquidity position. While the quick ratio decreased from 2.32 on March 31, 2021, to 0.85 on March 31, 2025, it is important to analyze the reasons behind this decline.
A quick ratio below 1.0 may indicate potential liquidity issues, signaling that the company may struggle to meet its short-term obligations without relying on selling inventory or other current assets. Electronic Arts should carefully monitor its liquidity position and take necessary steps to improve its quick ratio to ensure financial stability and the ability to meet its short-term financial commitments.
Peer comparison
Mar 31, 2025