Electronic Arts Inc (EA)
Financial leverage ratio
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,368,000 | 13,451,000 | 13,136,000 | 12,708,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 6,386,000 | 7,412,000 | 7,408,000 | 7,400,000 | 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 | 7,617,000 | 7,856,000 | 7,728,000 | 7,840,000 | 7,963,000 | 8,075,000 | 7,782,000 |
| Financial leverage ratio | 1.94 | 1.81 | 1.77 | 1.72 | 1.79 | 1.81 | 1.73 | 1.78 | 1.85 | 1.78 | 1.68 | 1.73 | 1.81 | 1.83 | 1.66 | 1.65 | 1.69 | 1.56 | 1.42 | 1.45 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,368,000K ÷ $6,386,000K
= 1.94
The financial leverage ratio of Electronic Arts Inc has shown fluctuating trends over the period from June 30, 2020, to March 31, 2025. The ratio started at 1.45 on June 30, 2020, indicating that the company had $1.45 in debt for every dollar of equity. Subsequently, the ratio decreased slightly to 1.42 by September 30, 2020, before rising to 1.56 by December 31, 2020.
From March 31, 2021, the financial leverage ratio increased consistently, reaching a high of 1.94 on March 31, 2025. This upward trend suggests that Electronic Arts Inc was relying more on debt financing relative to equity over the period under review. The ratio peaking at 1.94 indicates that the company had $1.94 in debt for every dollar of equity by the end of the period.
Overall, the increasing financial leverage ratio implies that Electronic Arts Inc was becoming more leveraged, potentially exposing the company to higher financial risk due to its increasing debt levels in comparison to its equity. It is essential for investors and stakeholders to monitor this ratio to assess the company's ability to meet its financial obligations and manage its debt levels effectively.
Peer comparison
Mar 31, 2025