Electronic Depreciation vs Free Cash Flow Analysis
EA Stock | USD 167.97 1.26 0.76% |
Electronic Arts financial indicator trend analysis is much more than just examining Electronic Arts latest accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Electronic Arts is a good investment. Please check the relationship between Electronic Arts Depreciation and its Free Cash Flow accounts. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Electronic Arts. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. For information on how to trade Electronic Stock refer to our How to Trade Electronic Stock guide.
Depreciation vs Free Cash Flow
Depreciation vs Free Cash Flow Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Electronic Arts Depreciation account and Free Cash Flow. At this time, the significance of the direction appears to have fragmental relationship.
The correlation between Electronic Arts' Depreciation and Free Cash Flow is 0.46. Overlapping area represents the amount of variation of Depreciation that can explain the historical movement of Free Cash Flow in the same time period over historical financial statements of Electronic Arts, assuming nothing else is changed. The correlation between historical values of Electronic Arts' Depreciation and Free Cash Flow is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Depreciation of Electronic Arts are associated (or correlated) with its Free Cash Flow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Free Cash Flow has no effect on the direction of Depreciation i.e., Electronic Arts' Depreciation and Free Cash Flow go up and down completely randomly.
Correlation Coefficient | 0.46 |
Relationship Direction | Positive |
Relationship Strength | Weak |
Depreciation
Depreciation indicates how much of Electronic Arts value has been used up. For tax purposes Electronic Arts can deduct the cost of the tangible assets it purchases as business expenses. However, Electronic Arts must depreciate these assets in accordance with IRS rules about how and when the deduction may be taken, and how long it will last. The systematic allocation of the cost of a tangible asset over its useful life.Free Cash Flow
The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.Most indicators from Electronic Arts' fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Electronic Arts current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Electronic Arts. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. For information on how to trade Electronic Stock refer to our How to Trade Electronic Stock guide.At present, Electronic Arts' Tax Provision is projected to increase significantly based on the last few years of reporting. The current year's Issuance Of Capital Stock is expected to grow to about 81.2 M, whereas Selling General Administrative is forecasted to decline to about 459.3 M.
2021 | 2022 | 2023 | 2024 (projected) | Gross Profit | 5.1B | 5.6B | 5.8B | 6.1B | Total Revenue | 7.0B | 7.4B | 7.6B | 7.9B |
Electronic Arts fundamental ratios Correlations
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Electronic Arts Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Electronic Arts fundamental ratios Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Total Assets | 11.1B | 13.3B | 13.8B | 13.5B | 13.4B | 14.1B | |
Other Current Liab | 1.1B | 1.3B | 2.9B | 1.2B | 2.4B | 2.5B | |
Total Current Liabilities | 2.7B | 3.0B | 3.5B | 3.3B | 3.1B | 3.2B | |
Total Stockholder Equity | 7.5B | 7.8B | 7.6B | 7.3B | 7.5B | 7.9B | |
Property Plant And Equipment Net | 449M | 491M | 550M | 549M | 578M | 362.1M | |
Net Debt | (2.8B) | (3.4B) | (773M) | (544M) | (952M) | (999.6M) | |
Retained Earnings | 7.5B | 7.9B | 7.6B | 7.4B | 7.6B | 8.0B | |
Cash | 3.8B | 5.3B | 2.7B | 2.4B | 2.9B | 1.7B | |
Non Current Assets Total | 4.6B | 6.1B | 9.6B | 9.5B | 9.2B | 9.6B | |
Non Currrent Assets Other | 305M | 362M | 507M | 481M | 436M | 457.8M | |
Cash And Short Term Investments | 5.7B | 6.4B | 3.1B | 2.8B | 3.3B | 2.3B | |
Net Receivables | 461M | 521M | 650M | 684M | 565M | 286.2M | |
Common Stock Shares Outstanding | 295M | 292M | 286M | 278M | 272M | 303.0M | |
Liabilities And Stockholders Equity | 11.1B | 13.3B | 13.8B | 13.5B | 13.4B | 14.1B | |
Non Current Liabilities Total | 987M | 2.5B | 2.7B | 2.9B | 2.8B | 3.0B | |
Other Current Assets | 321M | 326M | 439M | 518M | 420M | 225.9M | |
Total Liab | 3.7B | 5.4B | 6.2B | 6.2B | 5.9B | 6.2B | |
Total Current Assets | 6.5B | 7.2B | 4.2B | 4.0B | 4.2B | 2.9B | |
Property Plant And Equipment Gross | 449M | 491M | 1.6B | 1.6B | 1.7B | 1.8B | |
Intangible Assets | 53M | 309M | 962M | 618M | 400M | 236.7M | |
Other Assets | 149M | 2.0B | 2.4B | 2.8B | 3.2B | 3.3B | |
Property Plant Equipment | 449M | 491M | 550M | 549M | 631.4M | 477.5M | |
Current Deferred Revenue | 945M | 1.5B | 2.0B | 1.9B | 1.8B | 1.2B | |
Short Term Debt | 599M | 76M | 81M | 66M | 59.4M | 56.4M | |
Good Will | 1.9B | 2.9B | 5.4B | 5.4B | 5.4B | 5.6B | |
Other Liab | 367M | 435M | 608M | 784M | 901.6M | 946.7M | |
Net Tangible Assets | 5.5B | 4.7B | 1.3B | 1.3B | 1.5B | 2.2B | |
Long Term Debt | 397M | 1.9B | 1.9B | 1.9B | 1.9B | 996.4M | |
Retained Earnings Total Equity | 7.5B | 7.9B | 7.6B | 7.4B | 8.5B | 8.9B | |
Non Current Liabilities Other | 589M | 565M | 397M | 393M | 437M | 425.2M |
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Electronic Arts. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. For information on how to trade Electronic Stock refer to our How to Trade Electronic Stock guide.You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Is Interactive Home Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Electronic Arts. If investors know Electronic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Electronic Arts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.24) | Dividend Share 0.76 | Earnings Share 3.9 | Revenue Per Share 27.801 | Quarterly Revenue Growth 0.058 |
The market value of Electronic Arts is measured differently than its book value, which is the value of Electronic that is recorded on the company's balance sheet. Investors also form their own opinion of Electronic Arts' value that differs from its market value or its book value, called intrinsic value, which is Electronic Arts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Electronic Arts' market value can be influenced by many factors that don't directly affect Electronic Arts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Electronic Arts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Electronic Arts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Electronic Arts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.