Electronic Arts Inc (EA)
Debt-to-capital ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,882,000 | 1,880,000 | 1,878,000 | 1,876,000 | 397,000 |
| Total stockholders’ equity | US$ in thousands | 7,513,000 | 7,293,000 | 7,625,000 | 7,840,000 | 7,461,000 |
| Debt-to-capital ratio | 0.20 | 0.20 | 0.20 | 0.19 | 0.05 |
March 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,882,000K ÷ ($1,882,000K + $7,513,000K)
= 0.20
The debt-to-capital ratio of Electronic Arts Inc has remained relatively stable at around 0.20 over the past three years, indicating that the company's reliance on debt to finance its operations has remained consistent. However, there was a notable increase in the ratio from 0.05 in 2020 to 0.19 in 2021, suggesting a higher proportion of debt relative to total capital during that period. This increase could be a result of increased borrowing or a decrease in capital base.
Overall, a debt-to-capital ratio of 0.20 indicates that Electronic Arts Inc uses a moderate level of debt compared to its total capital structure. It is crucial to monitor the trend of this ratio over time to assess the company's financial leverage and risk profile.
Peer comparison
Mar 31, 2024