Electronic Arts Inc (EA)

Financial leverage ratio

Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Total assets US$ in thousands 12,368,000 13,420,000 13,459,000 13,800,000 13,288,000
Total stockholders’ equity US$ in thousands 6,386,000 7,513,000 7,293,000 7,625,000 7,840,000
Financial leverage ratio 1.94 1.79 1.85 1.81 1.69

March 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,368,000K ÷ $6,386,000K
= 1.94

Electronic Arts Inc's financial leverage ratio has shown a moderate upward trend over the years, increasing from 1.69 as of March 31, 2021, to 1.94 as of March 31, 2025. This indicates that the company has been relying more on debt financing relative to equity. Although the ratio surpassed 1.81 in 2022, it dipped slightly in 2024 to 1.79 before rising again in 2025. It is important for investors and stakeholders to closely monitor this trend as higher leverage ratios suggest higher financial risk and potential difficulties in meeting debt obligations.