Is ELECTRONIC ARTS INC. (EA) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 3.9% / 30% | 4.5% / 30% | 1.4% / 30% | 1.67% / 5% | ✓ HALAL |
| DJIM | 3.9% / 33% | 4.5% / 33% | 1.4% / 33% | 1.67% / 5% | ✓ HALAL |
| MSCI | 15.8% / 33% | 18.2% / 33% | 5.5% / 33% | 1.67% / 5% | ✓ HALAL |
| S&P | 3.9% / 33% | 4.5% / 33% | 1.4% / 33% | 1.67% / 5% | ✓ HALAL |
| FTSE | 15.8% / 33% | 18.2% / 33% | 5.5% / 50% | 1.67% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 78.3% | |
| Operating Margin | 8.6% | |
| Net Margin | 9.3% | |
| Return on Equity (ROE) | 10.0% | |
| Return on Assets (ROA) | 4.8% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $2.1B |
| Free Cash Flow | $1.9B |
| Total Debt | $2.0B |
| Debt-to-Equity | 36.4 |
| Current Ratio | 0.9 |
| Total Assets | $12.4B |
Price & Trading
| Last Close | $201.91 |
| 50-Day MA | $201.37 |
| 200-Day MA | $187.06 |
| Avg Volume | 2.5M |
| Beta | 0.8 |
|
52-Week Range
$131.15
| |
About ELECTRONIC ARTS INC. (EA)
Electronic Arts Inc. develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, and mobile phones worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation; and live services offerings, including extra content and subscription offerings through its global football and American football franchises, such as EA SPORTS College Football and EA SPORTS Madden NFL, as well as based on its IP comprising The Sims, Apex Legends, and Battlefield. The company markets and sells its games and services through digital distribution and retail channels; and directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.
Purification Calculator
As a halal stock with 1.67% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is ELECTRONIC ARTS INC. (EA) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ELECTRONIC ARTS INC. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is ELECTRONIC ARTS INC.'s debt ratio?
ELECTRONIC ARTS INC.'s debt ratio is 3.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 15.8%.
Does ELECTRONIC ARTS INC. require dividend purification?
Yes, ELECTRONIC ARTS INC. has an impermissible income ratio of 1.67%, which means 1.67% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are ELECTRONIC ARTS INC.'s key financial metrics?
ELECTRONIC ARTS INC. has a market capitalization of $50.6B, trailing P/E ratio of 75.7, and revenue of $7.5B. The company maintains a gross margin of 78.3% and a net margin of 9.3%. Return on equity stands at 10.0%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.