Take-Two Interactive Software Inc (TTWO)

Payables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	3,107,800	3,064,600	2,628,350	2,402,720	2,340,180
Payables	US$ in thousands	195,900	140,100	125,900	71,001	65,684
Payables turnover		15.86	21.87	20.88	33.84	35.63

March 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,107,800K ÷ $195,900K
= 15.86

The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating the number of times a company pays off its suppliers within a specific period. A higher payables turnover ratio generally indicates a company is taking less time to pay off its suppliers, which can be seen as a positive signal.

Analyzing Take-Two Interactive Software Inc's payables turnover over the past five years reveals a fluctuating trend. The payables turnover ratio decreased from 35.63 in March 2020 to 15.86 in March 2024. This decline could imply that the company is taking longer to pay off its suppliers, potentially signaling a shift in its payment strategy.

While a decreasing payables turnover ratio can be a cause for concern as it may indicate liquidity issues or strained relationships with suppliers, it is essential to consider other factors impacting the company's financial performance and operations before drawing definitive conclusions.

Overall, the decreasing trend in Take-Two Interactive Software Inc's payables turnover ratio suggests the need for further evaluation to understand the underlying reasons for the changes in payment dynamics and how they align with the company's overall financial health and operational efficiency.