Take-Two Interactive Software Inc (TTWO)

Payables turnover

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	2,571,400	2,330,000	2,469,700	2,728,300	2,788,900	3,474,100	3,426,400	3,256,500	3,064,500	2,240,125	1,898,604	1,641,386	1,535,401	1,416,423	1,412,288	1,388,111	1,535,085	1,651,078	1,741,927	1,777,670
Payables	US$ in thousands	194,700	144,800	177,100	170,300	195,900	151,800	131,800	127,500	140,100	151,600	162,800	199,900	125,882	100,720	83,401	67,136	71,001	100,159	85,103	56,410
Payables turnover		13.21	16.09	13.95	16.02	14.24	22.89	26.00	25.54	21.87	14.78	11.66	8.21	12.20	14.06	16.93	20.68	21.62	16.48	20.47	31.51

March 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,571,400K ÷ $194,700K
= 13.21

The payables turnover ratio of Take-Two Interactive Software Inc has experienced fluctuations over the time period analyzed.

The payables turnover ratio measures how efficiently a company is managing its accounts payable by indicating how many times during a period the company pays off its average accounts payable balance. A higher ratio is generally preferable as it suggests that the company is paying its suppliers more quickly.

In June 2020, the company had a payables turnover ratio of 31.51, indicating that it paid off its accounts payable balance approximately 31.51 times during that period. However, the ratio decreased gradually to 8.21 by June 2022, before starting to increase again.

By March 2025, the payables turnover ratio had improved to 13.21. This suggests that Take-Two Interactive Software Inc had been paying its suppliers more frequently compared to the previous years, which could indicate improved efficiency in managing its payables.

Overall, analyzing the trend of the payables turnover ratio can provide insights into the company's liquidity, cash flow management, and relationships with suppliers.