Electronic Arts Inc (EA)

Debt-to-equity 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-equity ratio		0.25	0.25	0.25	0.26	0.26	0.25	0.24	0.25	0.25	0.25	0.24	0.24	0.24	0.05	0.05	0.05	0.05	0.14	0.14	0.15

March 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,882,000K ÷ $7,513,000K
= 0.25

The debt-to-equity ratio of Electronic Arts Inc has been relatively stable over the past few quarters, hovering around the range of 0.24 to 0.26. This indicates that the company's capital structure is balanced, with a moderate level of debt compared to equity. The ratio has shown consistency, suggesting a prudent approach to managing debt levels while maintaining a healthy equity position. However, it is worth noting a significant increase in the ratio from 0.05 in the third quarter of 2020 to around 0.25-0.26 in recent quarters, indicating a shift towards slightly higher reliance on debt for financing. Overall, the trend in the debt-to-equity ratio reflects a well-managed financial structure by Electronic Arts Inc, with a focus on maintaining a healthy balance between debt and equity financing.