Electronic Arts Inc (EA)
Quick ratio
| 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 | US$ in thousands | 2,900,000 | 2,742,000 | 1,946,000 | 2,424,000 | 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 | 3,768,000 | 3,603,000 | 2,940,000 | 3,533,000 |
| Short-term investments | US$ in thousands | 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 | 1,967,000 | 1,999,000 | 1,943,000 | 1,654,000 |
| Receivables | US$ in thousands | 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 | 461,000 | 798,000 | 856,000 | 329,000 |
| Total current liabilities | US$ in thousands | 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 | 2,664,000 | 2,338,000 | 1,818,000 | 1,650,000 |
| 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 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered satisfactory, as it indicates the company can cover its current liabilities without relying on inventory sales.
In the case of Electronic Arts Inc, the quick ratio has fluctuated over the past few quarters, ranging from a low of 1.05 to a high of 3.34. The quick ratio has generally been above 1, indicating that Electronic Arts Inc has been able to comfortably meet its short-term obligations with its quick assets.
In recent quarters, the quick ratio has shown a decreasing trend, with a sequential decline from 1.24 in March 2024 to 1.05 in March 2023. This decline may suggest a potential decrease in the company's liquidity position or an increase in short-term liabilities relative to quick assets. However, it is important to note that even at its lowest point, the quick ratio remained above 1, indicating Electronic Arts Inc's ability to cover its short-term obligations.
Overall, Electronic Arts Inc's quick ratio suggests that the company has maintained a relatively strong liquidity position and has the ability to meet its short-term financial obligations without significant reliance on inventory turnover. Investors and analysts may want to monitor any further changes in the quick ratio to assess Electronic Arts Inc's liquidity health and financial stability.
Peer comparison
Mar 31, 2024