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 ......................................................