Take-Two Interactive Software Inc (TTWO)

Activity ratios

Short-term

Turnover ratios

	Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Inventory turnover	—	—	—	116.11	86.52
Receivables turnover	6.61	7.00	6.35	5.12	5.12
Payables turnover	13.21	15.86	21.87	12.20	21.62
Working capital turnover	—	—	—	1.98	1.70

Take-Two Interactive Software Inc's activity ratios provide insights into the efficiency with which the company manages its assets and liabilities to generate revenue.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory within a period. Take-Two's inventory turnover has improved from 86.52 in 2021 to 116.11 in 2022, indicating the company is selling its inventory faster in the most recent year, which is a positive sign of efficiency.

2. Receivables Turnover: This ratio reflects how quickly the company collects payments from its customers. The receivables turnover for Take-Two remained constant at 5.12 for 2021 and 2022, but increased to 6.35 in 2023 and further to 7.00 in 2024, suggesting an improvement in the collection of receivables over the years.

3. Payables Turnover: The payables turnover ratio assesses how quickly a company pays its suppliers. Take-Two's payables turnover decreased from 21.62 in 2021 to 12.20 in 2022, but then increased to 21.87 in 2023 and slightly decreased to 15.86 in 2024. The value fluctuates, indicating changes in the company's payment patterns to its suppliers.

4. Working Capital Turnover: The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales. Take-Two's working capital turnover increased from 1.70 in 2021 to 1.98 in 2022, showing a positive trend of generating more sales per unit of working capital.

Overall, the improving inventory turnover, receivables turnover, and working capital turnover ratios suggest increased operational efficiency and effective management of assets. However, fluctuations in the payables turnover ratio may warrant further investigation to understand the company's supplier payment practices better.

Average number of days

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Days of inventory on hand (DOH)	days	—	—	—	3.14	4.22
Days of sales outstanding (DSO)	days	55.19	52.18	57.52	71.26	71.24
Number of days of payables	days	27.64	23.01	16.69	29.93	16.88

Take-Two Interactive Software Inc's activity ratios provide insights into how efficiently the company manages its operations.

1. Days of Inventory on Hand (DOH):
- The DOH ratio decreased from 4.22 days in March 2021 to 3.14 days in March 2022. This suggests that the company is managing its inventory more efficiently during this period.
- For March 2023, March 2024, and March 2025, the DOH data is not available, so further analysis is required to understand the company's inventory management in those periods.

2. Days of Sales Outstanding (DSO):
- The DSO ratio remained relatively stable from 71.24 days in March 2021 to 71.26 days in March 2022. This indicates that the company's collection process for accounts receivable is consistent.
- A significant improvement is seen in March 2023 with a decrease in DSO to 57.52 days, suggesting a quicker collection of receivables.
- By March 2024, the DSO further decreased to 52.18 days, indicating continued efficiency in collecting payments from customers.
- Data for March 2025 is not available, so the trend in DSO for that period cannot be determined at this time.

3. Number of Days of Payables:
- The number of days of payables increased from 16.88 days in March 2021 to 29.93 days in March 2022. This suggests that the company took longer to pay its suppliers during this period.
- In March 2023, the number of days of payables decreased to 16.69 days, indicating a possible effort to manage payables more effectively.
- By March 2024, the number of days of payables increased to 23.01 days, suggesting a slower payment cycle than in March 2023.
- Data for March 2025 is not available, so analysis of the payables turnover for that period is not possible.

Overall, the data indicates improvements in inventory management, collection of receivables, and payables management over the analyzed periods. However, further information is needed to fully assess the company's activity ratios for the more recent years.

Long-term

	Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Fixed asset turnover	—	—	13.28	14.48	22.58
Total asset turnover	0.61	0.44	0.34	0.54	0.56

The fixed asset turnover ratio measures a company's ability to generate sales revenue from its investment in fixed assets such as property, plant, and equipment. Take-Two Interactive Software Inc's fixed asset turnover has shown a declining trend over the years, decreasing from 22.58 in March 2021 to 13.28 in March 2023, indicating that the company is generating fewer sales relative to its investment in fixed assets.

On the other hand, the total asset turnover ratio reflects how efficiently a company is using its total assets to generate revenue. Take-Two's total asset turnover has also declined over the years, dropping from 0.56 in March 2021 to 0.44 in March 2024. This suggests that the company's ability to generate sales from its total assets has weakened.

Overall, the decreasing trends in both fixed asset turnover and total asset turnover ratios for Take-Two Interactive Software Inc indicate a potential inefficiency in utilizing its assets to generate revenue. This may require further analysis to understand the reasons behind this decline and to determine appropriate strategies to improve operational efficiency and asset utilization.