Electronic Arts Inc (EA)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,420,000 | 13,459,000 | 13,800,000 | 13,288,000 | 11,112,000 |
| Total stockholders’ equity | US$ in thousands | 7,513,000 | 7,293,000 | 7,625,000 | 7,840,000 | 7,461,000 |
| Financial leverage ratio | 1.79 | 1.85 | 1.81 | 1.69 | 1.49 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,420,000K ÷ $7,513,000K
= 1.79
The financial leverage ratio of Electronic Arts Inc has shown a fluctuating trend over the past five years. The ratio was 1.49 in March 2020, increased to 1.69 in March 2021, further rose to 1.81 in March 2022, and reached its highest point at 1.85 in March 2023. However, in the most recent fiscal year ending in March 2024, the ratio decreased to 1.79.
The financial leverage ratio indicates the extent to which the company is using debt to finance its operations. A higher ratio suggests a higher level of debt in the company's capital structure. Despite the fluctuations seen in the ratio over the years, it remains relatively stable, indicating that Electronic Arts Inc has been employing a consistent level of leverage in its capital structure.
Overall, the trend in the financial leverage ratio of Electronic Arts Inc does not raise significant concerns about the company's financial stability, as the ratio has remained within a moderate range over the past five years. However, it is important for investors and stakeholders to monitor any future changes in the ratio, as significant fluctuations could indicate shifts in the company's debt management strategies or financial health.
Peer comparison
Mar 31, 2024