Electronic Arts Inc (EA)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 7,513,000 | 7,533,000 | 7,575,000 | 7,334,000 | 7,293,000 | 7,551,000 | 7,798,000 | 7,641,000 | 7,625,000 | 7,641,000 | 7,856,000 | 7,728,000 | 7,840,000 | 7,728,000 | 8,075,000 | 7,782,000 | 7,461,000 | 7,237,000 | 7,158,000 | 6,485,000 |
| Debt-to-capital ratio | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.19 | 0.20 | 0.20 | 0.20 | 0.19 | 0.20 | 0.19 | 0.05 | 0.05 | 0.05 | 0.05 | 0.12 | 0.12 | 0.13 |
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 been relatively stable around 0.20 for most recent quarters. This indicates that Electronic Arts relies more on equity financing rather than debt financing to fund its operations and growth. The company maintains a conservative capital structure with a small proportion of debt compared to equity.
However, there was a slight decrease in the debt-to-capital ratio in some quarters, such as in September 2022 and December 2020 where it fell to 0.19 and 0.05, respectively. This could suggest varying capital allocation strategies by the company during those periods.
It's worth noting that the debt-to-capital ratio increased to 0.12 in December 2019 and to 0.13 in June 2019, indicating a higher proportion of debt relative to capital in those periods. This could suggest a shift towards higher leverage to finance activities during those periods.
Overall, the historical trend of Electronic Arts Inc's debt-to-capital ratio shows a consistent reliance on equity financing with only minor fluctuations in debt levels.
Peer comparison
Mar 31, 2024