Electronic Arts Inc. — Earnings Quality Grade C
EA · Communication Services
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 33 days, change +6 days YoY
AR growth 20.2% exceeds revenue growth -1.3%
Revenue -1.3%, CFFO -10.2%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 11.1% vs revenue -1.3%. Normal
SG&A/Gross Profit = 28.8%, excellent (<30%)
Gross margin 79.3%, change +1.9pp. Stable
Cash Flow Quality
CFFO/NI = 1.85. Profits backed by cash
FCF $1.9B, FCF/NI = 1.66
Accruals ratio = -7.7%. Low accruals
Cash $2.2B covers debt $2.0B
Balance Sheet Health
Goodwill+Intangibles $5.7B = 89% of equity. Over 50%
Debt/EBITDA = 1.0x. Healthy
Other assets -4.4% vs revenue -1.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -2% YoY. Normal
Manipulation Score
M-Score = -2.65 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08