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Electronic Arts Debt-to-EBITDA

: 1.42 As of Sep. 2020
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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 Sep. 2020 was $685 Mil. Electronic Arts's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2020 was $397 Mil. Electronic Arts's annualized EBITDA for the quarter that ended in Sep. 2020 was $760 Mil. Electronic Arts's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2020 was 1.42.

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.

NAS:EA' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.54   Med: 0.79   Max: 2.2
Current: 0.68

0.54
2.2

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 0.79.

NAS:EA's Debt-to-EBITDA is ranked higher than
51% of the 266 Companies
in the Interactive Media industry.

( Industry Median: 0.75 vs. NAS:EA: 0.68 )

Electronic Arts Debt-to-EBITDA Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Electronic Arts Annual Data
Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Debt-to-EBITDA Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.05 0.69 0.61 0.79 0.63

Electronic Arts Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
Debt-to-EBITDA 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 Premium Member Only Premium Member Only Premium Member Only 0.81 0.63 0.57 0.52 1.42

Competitive Comparison
* 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.


Electronic Arts Debt-to-EBITDA Distribution

* 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. 2020 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(668 + 397) / 1700
=0.63

Electronic Arts's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2020 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(685 + 397) / 760
=1.42

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 (Sep. 2020) EBITDA data.


Electronic Arts  (NAS:EA) 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


Electronic Arts Debt-to-EBITDA Headlines

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