Electronic Arts Inc. cash flow to debt ratio of 137.70% 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 $1.86B last year to $2.32B, signaling increasing performance

Electronic Arts Inc.'s debt to equity ratio is 0.21, which means that the company's assets are healthy financed, signaling financial stability.

Electronic Arts Inc.'s debt has decreased relative to shareholder equity from 0.35 last year to 0.21 today, signaling strengthened financials

Electronic Arts Inc. has a net cash position, so leverage is healthy.

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 (8.11%) in the last year from 15.02% to 13.80%, signaling decreasing performance

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

Electronic Arts Inc.'s return on assets of 8.61% is higher than the 5.00% threshold, indicating efficient asset utilization

Electronic Arts Inc.'s return on equity of 16.66%, is higher than 15.00%, indicating good 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 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 4.39%, 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 $1.12B to $887.00M, signaling decreasing performance

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

ROIC 10.82% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

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 out of 5 years, indicating consistent revenue performance

Electronic Arts Inc. had positive ROE in 5 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 2.05%, 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 41.57x, 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 a PEG-ratio over 1 which is considered overvalued

Electronic Arts Inc. has a price-to-book ratio of 7.47x, 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 6.74x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue