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Electronic Arts (FRA:ERT) Debt-to-EBITDA : 1.02 (As of Dec. 2023)


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What is Electronic Arts Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Electronic Arts's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €65 Mil. Electronic Arts's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €1,725 Mil. Electronic Arts's annualized EBITDA for the quarter that ended in Dec. 2023 was €1,757 Mil. Electronic Arts's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 1.02.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Electronic Arts's Debt-to-EBITDA or its related term are showing as below:

FRA:ERT' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.54   Med: 0.9   Max: 2.2
Current: 0.99

During the past 13 years, the highest Debt-to-EBITDA Ratio of Electronic Arts was 2.20. The lowest was 0.54. And the median was 0.90.

FRA:ERT's Debt-to-EBITDA is ranked worse than
53.82% of 275 companies
in the Interactive Media industry
Industry Median: 0.75 vs FRA:ERT: 0.99

Electronic Arts Debt-to-EBITDA Historical Data

The historical data trend for Electronic Arts's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Electronic Arts Debt-to-EBITDA Chart

Electronic Arts Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.79 0.63 1.57 1.21 1.01

Electronic Arts Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.17 1.31 0.77 1.00 1.02

Competitive Comparison of Electronic Arts's Debt-to-EBITDA

For the Electronic Gaming & Multimedia subindustry, Electronic Arts's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Electronic Arts's Debt-to-EBITDA Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Electronic Arts's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Electronic Arts's Debt-to-EBITDA falls into.



Electronic Arts Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Electronic Arts's Debt-to-EBITDA for the fiscal year that ended in Mar. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(61.644 + 1755.92) / 1793.28
=1.01

Electronic Arts's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(65.107 + 1724.877) / 1756.972
=1.02

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.


Electronic Arts  (FRA:ERT) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Electronic Arts Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Electronic Arts's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


Electronic Arts (FRA:ERT) Business Description

Address
209 Redwood Shores Parkway, Redwood City, CA, USA, 94065
EA is one of the world's largest third-party video game publishers and has transitioned from a console-based video game publisher to the one of the largest publishers on consoles, PC, and mobile. The firm owns number of large franchises, including Madden, EA Sports FC, Battlefield, Apex Legends, Mass Effect, Dragon's Age, and Need for Speed.

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