Electronic Arts Inc (EA)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,420,000 | 13,617,000 | 13,139,000 | 13,083,000 | 13,459,000 | 13,470,000 | 13,079,000 | 13,192,000 | 13,800,000 | 13,930,000 | 13,019,000 | 12,734,000 | 13,288,000 | 12,420,000 | 11,470,000 | 11,284,000 | 11,112,000 | 11,161,000 | 10,593,000 | 9,749,000 |
| 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 |
| Financial leverage ratio | 1.79 | 1.81 | 1.73 | 1.78 | 1.85 | 1.78 | 1.68 | 1.73 | 1.81 | 1.82 | 1.66 | 1.65 | 1.69 | 1.61 | 1.42 | 1.45 | 1.49 | 1.54 | 1.48 | 1.50 |
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 fluctuated over the past few quarters, ranging from 1.42 to 1.85. This ratio measures the extent to which the company relies on debt to finance its operations and growth. A higher financial leverage ratio indicates a higher level of debt relative to equity in the company's capital structure.
Electronic Arts Inc's financial leverage ratio peaked at 1.85 in March 2023, suggesting a relatively higher proportion of debt in the company's capital structure at that time. This could increase the company's financial risk and interest burden. However, the ratio decreased to 1.42 in September 2020, indicating a lower reliance on debt financing compared to other periods.
Overall, the trend in Electronic Arts Inc's financial leverage ratio shows some variability but generally indicates a moderate level of debt utilization to support its operations and investments. It is essential for investors and analysts to monitor this ratio along with other financial metrics to assess the company's overall financial health and risk profile.
Peer comparison
Mar 31, 2024