Take-Two Interactive Software Inc (TTWO)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	3,107,800	3,400,500	3,404,200	3,234,300	3,064,500	3,333,050	2,991,550	2,734,350	2,628,350	1,628,389	1,867,918	2,049,086	2,383,027	2,469,865	2,538,382	2,595,314	2,340,182	2,198,910	2,664,974	2,366,539
Inventory	US$ in thousands	0	184,600	424,400	381,300	584,700	331,500	938,700	790,500	13,224	11,678	12,579	11,491	17,742	26,733	26,934	19,486	19,108	24,426	39,293	23,847
Inventory turnover		—	18.42	8.02	8.48	5.24	10.05	3.19	3.46	198.76	139.44	148.49	178.32	134.32	92.39	94.24	133.19	122.47	90.02	67.82	99.24

March 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,107,800K ÷ $0K
= —

The inventory turnover ratio of Take-Two Interactive Software Inc has shown fluctuation over the past quarters. A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which is generally seen as a positive indicator of operational efficiency.

Based on the data provided, the inventory turnover ratio for Take-Two Interactive Software Inc ranged from a low of 3.19 to a high of 198.76 over the last few quarters. The significant increase in inventory turnover from 3.19 to 198.76 can be seen from Jun 30, 2022, to Mar 31, 2022, which could be a result of strong sales and better inventory management during that period.

It is important to note that exceptionally high inventory turnover ratios, such as the 198.76 reported on Mar 31, 2022, may be due to specific circumstances such as a seasonal spike in sales, inventory liquidation, or an accounting anomaly. This should be further investigated to understand the underlying reasons.

Overall, a more consistent and stable inventory turnover ratio, within a reasonable range, is generally considered healthier for a company's operations. Fluctuations in inventory turnover should be monitored closely to assess whether they are in line with the company's strategic goals and market dynamics.