Take-Two Interactive Software Inc (TTWO)

Days of sales outstanding (DSO)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Receivables turnover		7.87	7.01	6.03	6.10	5.21
DSO	days	46.38	52.07	60.48	59.87	70.12

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.87
= 46.38

To analyze Take-Two Interactive Software Inc's days of sales outstanding (DSO) over the past five years, we observe a generally decreasing trend in DSO, which indicates an improvement in the company's ability to collect its accounts receivable efficiently.

In the fiscal year ending March 31, 2020, the DSO was reported at 70.12 days, which decreased to 59.87 days in 2021, further dropping to 60.48 days in 2022. Subsequently, in the fiscal year ending March 31, 2023, the DSO decreased to 52.07 days, and further improved to 46.38 days in 2024.

A decreasing DSO over the years suggests that Take-Two Interactive Software Inc has been enhancing its credit and collection policies, resulting in quicker conversion of accounts receivable into cash. This can be attributed to the company's improved collection efforts, stricter credit policies, or enhanced customer relationships.

Overall, the decreasing trend in DSO reflects positively on the company's liquidity and efficiency in managing its working capital.