Electronic Arts Inc (EA)
Interest coverage
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,647,000 | 1,384,000 | 1,139,000 | 1,062,000 | 1,552,000 |
| Interest expense | US$ in thousands | 58,000 | 58,000 | 58,000 | 45,000 | 44,000 |
| Interest coverage | 28.40 | 23.86 | 19.64 | 23.60 | 35.27 |
March 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,647,000K ÷ $58,000K
= 28.40
Electronic Arts Inc's interest coverage ratio has shown a generally positive trend over the past five years, indicating the company's ability to meet its interest payment obligations from its operating income. The ratio has gradually increased from 35.27 in 2020 to 28.40 in 2024, with some fluctuations in between. This trend suggests that Electronic Arts' earnings are comfortably exceeding its interest expenses, providing a strong buffer against potential financial risks associated with debt obligations. Overall, the company's interest coverage ratio reflects a healthy financial position and ability to service its debt.
Peer comparison
Mar 31, 2024