Electronic Arts Inc (EA)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Electronic Arts Inc has consistently maintained a strong solvency position over the reported periods, as evidenced by its low debt-to-assets ratio, which has remained at 0.00 throughout. This indicates that the company has not relied heavily on debt to finance its operations and investments.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also remained stable at 0.00 over the same periods. This reaffirms the company's ability to fund its operations predominantly through equity and capital without incurring significant debt obligations.
The financial leverage ratio, although showing some fluctuations, has generally stayed within a moderate range between 1.42 and 1.94. This suggests that while there is some level of financial leverage being used by the company, it is well-managed and not at concerning levels.
Overall, Electronic Arts Inc's solvency ratios reflect a prudent financial strategy with a focus on maintaining a healthy balance between debt and equity financing, which has contributed to a solid solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 16.89 | 17.34 | 16.31 | 16.25 | 22.41 | 29.65 | 35.56 | 36.46 | 43.53 | 36.19 | 27.55 | 25.41 | 19.41 | 17.77 | 21.76 | 19.09 | 24.33 | 30.29 | 32.95 | 36.43 |
The interest coverage ratio of Electronic Arts Inc has shown a declining trend over the reporting periods provided. The ratio indicates the company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio is generally considered better as it suggests that the company is more capable of meeting its interest obligations.
In June 2020, Electronic Arts Inc had an interest coverage ratio of 36.43, indicating a strong ability to cover its interest expenses. However, the ratio decreased steadily over time, reaching its lowest point of 16.25 in June 2024. This declining trend may raise concerns about the company's ability to meet its interest payments with its operational earnings.
It is important for investors and creditors to monitor Electronic Arts Inc's interest coverage ratio closely to assess the company's financial health and ability to manage its debt obligations effectively. Further analysis of the company's financial position and performance would be necessary to understand the factors driving the changes in the interest coverage ratio over time.