Electronic Arts Inc. cash flow to debt ratio of 164.92% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Electronic Arts Inc.'s free cash flow has increased 25.03% from $1.86G last year to $2.32G, signaling increasing performance

Electronic Arts Inc.'s debt to equity ratio is 0.23, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.

Electronic Arts Inc.'s debt has decreased relative to shareholder equity from 0.35 last year to 0.23 today, signaling strengthened financials

Electronic Arts Inc. has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Electronic Arts Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Electronic Arts Inc.'s profit margin has decreased (-21.59%) in the last year from 15.02% to 11.78%, signaling decreasing performance

Electronic Arts Inc.'s short-term assets of $3.97G exceed its short-term liabilities of $3.80G

Electronic Arts Inc.'s return on assets of 6.76% is higher than the 5.00% threshold, indicating efficient asset utilization

Electronic Arts Inc.'s return on equity of 14.19%, is lower than 15.00%, indicating bad performance

Electronic Arts Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Electronic Arts Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Electronic Arts Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Electronic Arts Inc. has a free cash flow yield of 4.51%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Electronic Arts Inc.'s yearly earnings has decreased -20.87% since last year from $1.12G to $887.00M, signaling decreasing performance

Electronic Arts Inc.'s yearly revenue has increased 0.91% since last year from $7.46G to $7.53G, signaling increasing performance

ROIC 9.30% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Electronic Arts Inc.'s 3-year revenue CAGR of 0.47% is positive, indicating growing revenue over the past 3 years

Electronic Arts Inc. had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance

Electronic Arts Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Electronic Arts Inc. is overvalued relative to its fair value price of 95.62 based on Discounted Cash Flow model

Electronic Arts Inc. has an earnings yield of 1.73%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Electronic Arts Inc. is overvalued relative to its fair value price of 56.15 based on EBITDA multiple model

Electronic Arts Inc. has an EV/EBITDA ratio of 33.68x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Electronic Arts Inc. is overvalued relative to its fair value price of 81.10 based on Earnings Fair Value model

Electronic Arts Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Electronic Arts Inc. has a price-to-book ratio of 7.59x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Electronic Arts Inc. has a price-to-sales ratio of 6.83x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue