Electronic Arts Inc (EA)

Electronic Arts Inc has consistently maintained a strong solvency position as indicated by its solvency ratios over the past five years. The Debt-to-assets ratio, which measures the proportion of assets financed by debt, has remained at 0.00 throughout the period. This suggests that Electronic Arts Inc relies very little on debt to fund its operations and investments.

Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also remained stable at 0.00 over the same period. These ratios indicate the extent to which debt contributes to the company's capital structure and the level of financial risk associated with debt. The fact that both ratios are at 0.00 indicates that Electronic Arts Inc is effectively managing its debt levels and maintaining a conservative capital structure.

The Financial leverage ratio, which shows the degree of financial leverage in the company's capital structure, has shown a slight increase over the years but still remains relatively low. This suggests that while the company is using some leverage to finance its operations, it is not overleveraged and is effectively balancing its use of debt to enhance returns without increasing financial risk significantly.

Overall, based on the solvency ratios analyzed, Electronic Arts Inc appears to be in a strong financial position with minimal reliance on debt financing, a conservative capital structure, and a manageable level of financial leverage.

---

Coverage ratios

Electronic Arts Inc's interest coverage ratio has shown fluctuations over the years based on the provided data. The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

As of March 31, 2021, Electronic Arts Inc had an interest coverage ratio of 24.33, reflecting a robust ability to cover its interest obligations. However, this ratio decreased to 19.41 by March 31, 2022, which may indicate a slightly reduced ability to cover interest expenses.

Subsequently, the interest coverage ratio improved to 23.86 by March 31, 2023, suggesting a recovery in the company's ability to cover interest costs. By March 31, 2024, Electronic Arts Inc's interest coverage ratio further increased to 28.40, indicating a strong ability to meet interest payments.

Interestingly, the data for March 31, 2025 shows an interest coverage ratio of 0.00. A zero or negative interest coverage ratio could indicate that Electronic Arts Inc's operating income is insufficient to cover its interest expenses. This may raise concerns about the company's financial health and ability to meet its debt obligations.

In conclusion, Electronic Arts Inc has experienced fluctuations in its interest coverage ratio over the years, with varying implications for its ability to cover interest expenses. It is important for investors and analysts to closely monitor this ratio to assess the company's financial stability and debt repayment capacity.