Electronic Arts Inc (EA)

Electronic Arts Inc has maintained a consistent level of solvency over the past five years as indicated by its solvency ratios. The Debt-to-assets ratio has remained relatively stable at around 0.14, suggesting that the company finances approximately 14% of its assets through debt.

Similarly, the Debt-to-capital ratio has also remained steady at around 0.20, indicating that the company uses debt to finance about 20% of its total capital. The Debt-to-equity ratio has shown slight fluctuations but has generally stayed within a range of 0.24 to 0.26, which implies that debt comprises around 24-26% of the company's equity.

The Financial leverage ratio has increased over the years, reaching 1.79 in 2024. This ratio indicates that the company is relying more on debt to finance its operations compared to previous years, where the ratio was below 1.5. Overall, Electronic Arts Inc's solvency ratios demonstrate a moderate level of leverage and indicate the company's ability to manage its debt obligations effectively.

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Coverage ratios

The interest coverage ratio for Electronic Arts Inc has shown a generally positive trend over the past five years, indicating the company's ability to meet its interest obligations with its earnings. The ratio has ranged from 19.64 to 35.27 during this period, with the highest value observed in March 2020. This suggests that Electronic Arts Inc has had a strong ability to cover its interest expenses with its operating income, providing a cushion against potential financial risks. Additionally, the consistent improvement in the interest coverage ratio reflects the company's effective management of its debt and operational performance, which bodes well for its financial health and stability.