Aureus
AExcellent

Electronic Arts Inc.(EA)

A

Financial data as of Mar 31, 2025Improving · Communication Services

FCF Margin24.9%Free Cash Flow / Revenue
Cash Conversion185.5%Operating CF / Net Income
Free Cash Flow$1.9B
Revenue$7.5B
Net Cash$185.0MCash exceeds debt
Debt / FCF1.1xManageable debt load
Current Ratio0.95Tight short-term liquidity
YoY FCF Growth+57.4%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (24.9%, 1.1x)
→
-1Current ratio below 1.0 (0.95)
→
+1Strong YoY FCF growth (57.4% YoY)
→
-0.5Highly volatile FCF (consistency: 0.99)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (1.1x)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (24.9%)
  • Excellent cash conversion (185%)
  • Net cash position ($0.2B)
  • Very low debt relative to cash flow (1.1x)
  • Strong YoY FCF growth (+57.4%)
  • FCF trend is improving

Concerns

  • Current ratio below 1.0 — tight short-term liquidity
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin24.9%
Net Margin15.0%
Operating CF Margin27.9%
CapEx Ratio3.0%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$185.0MCash exceeds debt
Debt / FCF1.1xManageable debt load
Current Ratio0.95Tight liquidity
Debt / Equity0.31Low leverage

Quarterly FCF Trend

+57.4% YoYImproving (+57.4%)

Free cash flow per quarter

Sector Comparison — Communication Services

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameElectronic Arts Inc.
SectorCommunication Services
Free Cash Flow$1.9B
Revenue$7.5B
Net Income$1.1B
Operating Cash Flow$2.1B
Capital Expenditure$221.0M
FCF Margin24.9%
Cash Conversion Rate185.5%
Net Margin15.0%
Total Debt$2.0B
Total Cash$2.1B
Net Cash$185.0M
Current Ratio0.95
Debt / Equity0.31
Debt / FCF1.1x
YoY FCF Growth+57.4%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateMar 31, 2025
GradeA
Data SourceYahoo Finance

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