Electronic Arts Inc (EA)

Debt-to-assets 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
Long-term debt	US$ in thousands	1,882,000	1,881,000	1,881,000	1,880,000	1,880,000	1,879,000	1,879,000	1,878,000	1,878,000	1,878,000	1,877,000	1,877,000	1,876,000	397,000	397,000	397,000	397,000	995,000	995,000	995,000
Total assets	US$ in thousands	13,420,000	13,617,000	13,139,000	13,083,000	13,459,000	13,470,000	13,079,000	13,192,000	13,800,000	13,930,000	13,019,000	12,734,000	13,288,000	12,420,000	11,470,000	11,284,000	11,112,000	11,161,000	10,593,000	9,749,000
Debt-to-assets ratio		0.14	0.14	0.14	0.14	0.14	0.14	0.14	0.14	0.14	0.13	0.14	0.15	0.14	0.03	0.03	0.04	0.04	0.09	0.09	0.10

March 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,882,000K ÷ $13,420,000K
= 0.14

The debt-to-assets ratio for Electronic Arts Inc has remained relatively stable over the past few quarters, standing at around 0.14 in the most recent quarter. This ratio indicates that, on average, the company funds approximately 14% of its assets through debt, while the remaining 86% is financed through equity. The consistent nature of this ratio suggests that Electronic Arts has maintained a prudent balance between debt and equity financing in its capital structure.

It is noteworthy that the debt-to-assets ratio briefly decreased to 0.03 and 0.04 in the last two quarters of 2020 before returning to its historical range. This temporary decrease may have been influenced by specific financial decisions or events during that period, and the subsequent stabilization suggests a return to the company's preferred leverage levels.

Overall, a debt-to-assets ratio of 0.14 indicates that Electronic Arts Inc relies moderately on debt to finance its operations and investments, while still maintaining a significant portion of its assets funded by equity. This balance can provide both flexibility and financial stability to the company, allowing it to utilize debt strategically while not becoming overly leveraged.