Take-Two Interactive Software Inc (TTWO)

Fixed asset turnover

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Revenue (ttm)	US$ in thousands	5,349,600	5,396,400	5,437,900	5,532,200	5,349,900	4,822,896	4,318,396	3,783,096	3,493,996	3,420,892	3,372,649	3,354,562	3,369,915	3,284,364	3,358,880	3,378,818	3,087,326	2,865,792	3,195,769	2,828,138
Property, plant and equipment	US$ in thousands	411,100	400,400	392,000	405,900	402,800	360,600	333,800	300,200	242,000	235,957	231,230	224,880	149,364	135,257	133,404	128,904	131,888	127,417	129,168	126,393
Fixed asset turnover		13.01	13.48	13.87	13.63	13.28	13.37	12.94	12.60	14.44	14.50	14.59	14.92	22.56	24.28	25.18	26.21	23.41	22.49	24.74	22.38

March 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,349,600K ÷ $411,100K
= 13.01

The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales. Take-Two Interactive Software Inc's fixed asset turnover has shown fluctuations over the periods provided.

From Mar 31, 2019 to Mar 31, 2020, the fixed asset turnover ratio ranged from 22.38 to 26.21, showing a strong efficiency in generating revenue from fixed assets. This trend continued into 2021 with ratios consistently above 14.

However, starting from Jun 30, 2021, the fixed asset turnover ratio began to decrease, reaching its lowest point of 12.60 on Jun 30, 2022. This could indicate a decline in the efficiency of utilizing fixed assets to generate revenue during this period.

From Dec 31, 2022 to Mar 31, 2024, the fixed asset turnover ratio exhibited a slight recovery, with values ranging from 13.01 to 14.50. Despite this uptick, the ratio has not yet reached the previous high levels observed in 2020 and early 2021.

In conclusion, while Take-Two Interactive Software Inc's fixed asset turnover ratio has shown fluctuations, it is essential for the company to continue monitoring and optimizing the use of its fixed assets to enhance operational efficiency and revenue generation in the long term.