Electronic Arts Inc.: Company Profile and SWOT Analysis

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					Electronic Arts Inc.

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Electronic Arts Inc.                                                         Financial Snapshot

                                                                             Operating Performance
Fast Facts
                                      209 Redwood Shores Parkway, Redwood    The company reported revenue of US$3,589.00
Headquarters Address
                                      City, 94065,United States of America   million during the fiscal year 2011 (2011). The
                                                                             company's revenue grew at a CAGR of 3.81% during
Telephone                             + 16506281500
                                                                             2007–2011, with an annual decline of -1.78% over
                                                                             2010. In 2011, the company recorded an operating
Fax                                   + 16506281414                          margin of -8.69%, as against -18.77% in <2010.

Website                               www.ea.com
                                                                             Revenue and Margins
Ticker Symbol, Stock Exchange         ERTS, NASDAQ

Number of Employees                   7,973

Fiscal Year End                       March

Revenue (in US$ million)              3,589.00




SWOT Analysis

Strengths                             Weaknesses                             Return on Equity

Global Presence                       Declining Market Share in Sector       The company recorded a return on equity (ROE) of -
                                                                             10.76% for 2011, as compared to its peers, Take-Two
                                      Dependent on Single Platform &         Interactive Software, Inc. (Ticker: TTWO), Konami
Inorganic Growth                                                             Corporation (Ticker: 9766) and Sony Corporation
                                      Manufacturers
                                                                             (Ticker: 6758), which recorded ROEs of 7.88%,
Strong Brand Portfolio and Titles     Limited Customer Base                  6.67% and -10.19% respectively. The company
                                                                             reported a net profit margin of -8.69% in 2011.
Opportunities                         Threats
                                                                             Return on Equity
Demand for Video Games                Highly Competitive Marketplace

Strong Growth in Online Gaming
                                      Piracy & Unauthorized Copying
Services
Transition to New Video Game
                                      Rapid Changes in Technology
Consoles




                                                                             Liquidity Position

                                                                             The company reported a current ratio of 1.52 in 2011,
                                                                             as compared to its peers, Take-Two Interactive
                                                                             Software, Inc., Konami Corporation and Sony
                                                                             Corporation, which recorded current ratios of 2.45,
                                                                             2.36 and 0.93 respectively. As of March 2011, the
                                                                             company recorded cash and short-term investments
                                                                             of worth US$2,237.00 million, against zero current
                                                                             debt. The company reported a debt to equity ratio of
                                                                             0.00 in 2011 as compared to its peers, Take-Two
                                                                             Interactive Software, Inc., Konami Corporation and
                                                                             Sony Corporation, which recorded debt to equity
                                                                             ratios of 0.17, 0.24 and 0.38 respectively.




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Electronic Arts Inc. - SWOT Profile                                                                                 Page 1
Electronic Arts Inc.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................7
2     Analysis of Key Performance Indicators ............................................................................................... 8
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................8
    2.2       Key Financial Performance Indicators .................................................................................................................11
      2.2.1       Revenue and Operating Profit .........................................................................................................................11
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................12
      2.2.3       Operational Efficiency ......................................................................................................................................13
    2.3       Competitive Benchmarking ..................................................................................................................................14
      2.3.1       Efficiency ..........................................................................................................................................................14
      2.3.2       Capital Expenditure ..........................................................................................................................................15
      2.3.3       Turnover – Inventory and Asset .......................................................................................................................16
3     Mergers & Acquisitions and Partnerships ........................................................................................... 17
    3.1       M&A and Partnerships Strategy ...........................................................................................................................17
4     Recent Developments ........................................................................................................................... 20
5     SWOT Analysis ...................................................................................................................................... 22
    5.1       SWOT Analysis - Overview ..................................................................................................................................22
    5.2       Strengths ..............................................................................................................................................................22
    5.3       Weaknesses .........................................................................................................................................................22
    5.4       Opportunities ........................................................................................................................................................23
    5.5       Threats .................................................................................................................................................................24
6     Electronic Arts Inc. - Company Statement ........................................................................................... 25
7     History .................................................................................................................................................... 28
8     Electronic Arts Inc. - Key Employees ................................................................................................... 31
9     Key Employee Biographies................................................................................................................... 32
10    Locations and Subsidiaries .................................................................................................................. 33
    10.1      Head Office ..........................................................................................................................................................33
    10.2      Other Locations and Subsidiaries ........................................................................................................................33
11    Appendix ................................................................................................................................................ 34
    11.1      Methodology ......................................................
				
DOCUMENT INFO
Description: ICD Research's "Electronic Arts Inc.: Company Profile and SWOT Analysis" contains in depth information and data about the company and its operations. The profile contains a company overview, business description, financial ratios, SWOT analysis, key facts, information on products and services, details of locations and subsidiaries, plus information on key news events affecting the company.
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