Electronic Arts Financials

EA Stock  USD 132.67  0.80  0.61%   
Based on the key indicators related to Electronic Arts' liquidity, profitability, solvency, and operating efficiency, Electronic Arts is performing exceptionally good at this time. It has a great probability to report excellent financial results in April. At present, Electronic Arts' Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Other Current Liabilities is expected to grow to about 1.5 B, whereas Property Plant And Equipment Net is forecasted to decline to about 354.1 M. Key indicators impacting Electronic Arts' financial strength include:
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.07060.0972
Way Down
Pretty Stable
Return On Assets0.08360.0685
Fairly Up
Very volatile
Return On Equity0.130.11
Fairly Up
Very volatile
Debt Equity Ratio0.210.24
Fairly Down
Pretty Stable
Operating Income1.6 B1.5 B
Sufficiently Up
Slightly volatile
Current Ratio2.721.39
Way Up
Pretty Stable
The financial analysis of Electronic Arts is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for Electronic Arts includes many different criteria found on its balance sheet. For example, investors should never minimize Electronic Arts' ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor Electronic Arts' cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in Electronic Arts.

Net Income

968.41 Million

With this module, you can analyze Electronic financials for your investing period. You should be able to track the changes in Electronic Arts individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
  
Understanding current and past Electronic Arts Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Electronic Arts' financial statements are interrelated, with each one affecting the others. For example, an increase in Electronic Arts' assets may result in an increase in income on the income statement.
Evaluating Electronic Arts' financials involves analyzing a range of financial metrics and ratios to gain insights into the company's financial health and performance. However, considering all of Electronic Arts' profitability, liquidity ratios, and efficiency indicators at the same time could be an enormous task, and our Financial Distress score can provide you with a snapshot of the Electronic Arts' relative financial performance

Chance Of Distress

Less than 9

 
100  
 
Zero
Low
Electronic Arts has less than 9 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for Electronic Arts stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity.
Please note, Electronic Arts' odds of distress score SHOULD NOT be confused with the real chance of Electronic Arts filing for bankruptcy protection for chapters 7, 11, 12, or 13. We define Financial Distress as an operational condition where an entity such as Electronic is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from public financial statements and analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors considered include Electronic Arts' liquidity analysis, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
More Info
The data published in Electronic Arts' official financial statements usually reflect Electronic Arts' business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Electronic Arts. For example, before you start analyzing numbers published by Electronic accountants, it's critical to develop an understanding of what Electronic Arts' liquidity, profitability, and earnings quality are in the context of the Entertainment space in which it operates.
Please note, the presentation of Electronic Arts' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Electronic Arts' management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Electronic Arts' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Electronic Arts. Please utilize our Beneish M Score to check the likelihood of Electronic Arts' management manipulating its earnings.

Electronic Arts Company Summary

Electronic Arts competes with Mobile Global, Motorsport Gaming, Playstudios, and The9. Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California. Electronic Arts operates under Electronic Gaming Multimedia classification in the United States and is traded on NASDAQ Exchange. It employs 12900 people.
Specialization
Communication Services, Electronic Gaming & Multimedia
InstrumentUSA Stock View All
ExchangeNASDAQ Exchange
CIK Number0000712515
ISINUS2855121099
CUSIP285512109
RegionNorth America
LocationCalifornia; U.S.A
Business Address209 Redwood Shores
SectorEntertainment
IndustryCommunication Services
BenchmarkNYSE Composite
Websitewww.ea.com
Phone650 628 1500
CurrencyUSD - US Dollar
You should never invest in Electronic Arts without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of Electronic Stock, because this is throwing your money away. Analyzing the key information contained in Electronic Arts' financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

Electronic Arts Key Financial Ratios

Generally speaking, Electronic Arts' financial ratios allow both analysts and investors to convert raw data from Electronic Arts' financial statements into concise, actionable information that can be used to evaluate the performance of Electronic Arts over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that Electronic Arts reports annually and quarterly.

Electronic Arts Key Balance Sheet Accounts

201920202021202220232024 (projected)
Total Assets11.1B13.3B13.8B13.5B15.5B16.3B
Other Current Liab1.1B1.3B1.3B1.2B1.4B1.5B
Net Debt(2.8B)(3.4B)(773M)(544M)(489.6M)(514.1M)
Retained Earnings7.5B7.9B7.6B7.4B8.5B8.9B
Cash3.8B5.3B2.7B2.4B2.8B1.6B
Net Receivables461M521M650M684M786.6M825.9M
Other Current Assets321M326M439M518M595.7M625.5M
Total Liab3.7B5.4B6.2B6.2B7.1B7.4B
Total Current Assets6.5B7.2B4.2B4.0B4.6B2.9B
Intangible Assets53M309M962M618M710.7M746.2M
Other Assets149M2.0B2.4B2.8B3.2B3.3B
Short Term Debt599M76M81M66M75.9M72.1M
Good Will1.9B2.9B5.4B5.4B6.2B6.5B
Other Liab367M435M608M784M901.6M946.7M
Net Tangible Assets5.5B4.7B1.3B1.3B1.5B2.2B
Long Term Debt397M1.9B1.9B1.9B2.2B2.3B

Electronic Arts Key Cash Accounts

Cash flow analysis captures how much money flows into and out of Electronic Arts. It measures of how well Electronic is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money Electronic Arts brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money Electronic had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what Electronic Arts has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
201920202021202220232024 (projected)
Change To Inventory(164M)41M77M34M39.1M41.1M
Change In Cash(940M)1.5B(2.5B)(308M)(277.2M)(263.3M)
Free Cash Flow1.7B1.8B1.7B1.3B1.5B1.6B
Depreciation150M181M486M536M616.4M647.2M
Other Non Cash Items1.9B143M329M221M254.2M266.9M
Capital Expenditures140M124M188M207M238.1M250.0M
Net Income3.0B837M789M802M922.3M968.4M
End Period Cash Flow3.8B5.3B2.7B2.4B2.8B1.6B
Investments(1.2B)858M(2.8B)(217M)(195.3M)(205.1M)
Change Receivables164M(41M)(77M)(34M)(39.1M)(41.1M)
Change To Netincome(1.5B)292M528M327M294.3M309.0M

Electronic Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Electronic Arts's current stock value. Our valuation model uses many indicators to compare Electronic Arts value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Electronic Arts competition to find correlations between indicators driving Electronic Arts's intrinsic value. More Info.
Electronic Arts is rated below average in shares owned by insiders category among related companies. It is rated # 4 in z score category among related companies totaling about  45.31  of Z Score per Shares Owned By Insiders. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Electronic Arts by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Electronic Arts' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Electronic Arts' earnings, one of the primary drivers of an investment's value.

Electronic Arts Systematic Risk

Electronic Arts' systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Electronic Arts volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was twenty-four with a total number of output elements of thirty-seven. The Beta measures systematic risk based on how returns on Electronic Arts correlated with the market. If Beta is less than 0 Electronic Arts generally moves in the opposite direction as compared to the market. If Electronic Arts Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Electronic Arts is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Electronic Arts is generally in the same direction as the market. If Beta > 1 Electronic Arts moves generally in the same direction as, but more than the movement of the benchmark.

About Electronic Arts Financials

What exactly are Electronic Arts Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include Electronic Arts' income statement, its balance sheet, and the statement of cash flows. Potential Electronic Arts investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Electronic Arts investors may use each financial statement separately, they are all related. The changes in Electronic Arts's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Electronic Arts's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

Steps to analyze Electronic Arts Financials for Investing

There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Electronic Arts is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Electronic has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.
In summary, you can determine if Electronic Arts' financials are consistent with your investment objective using the following steps:
  • Review Electronic Arts' balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
  • Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
  • Study the cash flow inflows and outflows to understand Electronic Arts' liquidity and solvency.
  • Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
  • Compare Electronic Arts' financials to those of its peers to see how it stacks up and identify any potential red flags.
  • Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Electronic Arts' stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.

Electronic Arts Thematic Clasifications

Electronic Arts is part of several thematic ideas from Toys to Business Services. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. Get More Thematic Ideas
Today, most investors in Electronic Arts Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Electronic Arts' growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Electronic Arts growth as a starting point in their analysis.

Price Earnings To Growth Ratio

11.64

At present, Electronic Arts' Price Earnings To Growth Ratio is projected to increase based on the last few years of reporting.

Electronic Arts March 28, 2024 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of Electronic Arts help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Electronic Arts. We use our internally-developed statistical techniques to arrive at the intrinsic value of Electronic Arts based on widely used predictive technical indicators. In general, we focus on analyzing Electronic Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Electronic Arts's daily price indicators and compare them against related drivers.
When determining whether Electronic Arts offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Electronic Arts' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Electronic Arts Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Electronic Arts Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Electronic Arts. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
For information on how to trade Electronic Stock refer to our How to Trade Electronic Stock guide.
Note that the Electronic Arts information on this page should be used as a complementary analysis to other Electronic Arts' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

Complementary Tools for Electronic Stock analysis

When running Electronic Arts' price analysis, check to measure Electronic Arts' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Electronic Arts is operating at the current time. Most of Electronic Arts' value examination focuses on studying past and present price action to predict the probability of Electronic Arts' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Electronic Arts' price. Additionally, you may evaluate how the addition of Electronic Arts to your portfolios can decrease your overall portfolio volatility.
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Is Electronic Arts' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Electronic Arts. If investors know Electronic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Electronic Arts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.466
Dividend Share
0.76
Earnings Share
3.97
Revenue Per Share
28.177
Quarterly Revenue Growth
0.034
The market value of Electronic Arts is measured differently than its book value, which is the value of Electronic that is recorded on the company's balance sheet. Investors also form their own opinion of Electronic Arts' value that differs from its market value or its book value, called intrinsic value, which is Electronic Arts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Electronic Arts' market value can be influenced by many factors that don't directly affect Electronic Arts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Electronic Arts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Electronic Arts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Electronic Arts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.