Take-Two Interactive Software Inc (TTWO)

Payables 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
Payables	US$ in thousands	195,900	151,800	131,800	127,500	140,100	151,600	162,800	199,900	125,900	100,720	83,401	67,136	71,001	100,159	85,103	56,410	65,684	82,491	114,946	55,379
Payables turnover		15.86	22.40	25.83	25.37	21.87	21.99	18.38	13.68	20.88	16.17	22.40	30.52	33.56	24.66	29.83	46.01	35.63	26.66	23.18	42.73

March 31, 2024 calculation

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

The payables turnover ratio for Take-Two Interactive Software Inc has shown fluctuations over the past several quarters. The ratio indicates how efficiently the company is managing its trade payables by measuring how many times during the period the company pays off its suppliers.

In the most recent quarter of March 31, 2024, the payables turnover ratio was 15.86, indicating that the company paid off its suppliers approximately 15.86 times during that quarter. This marks a decrease from the previous quarter's ratio of 22.40. This decline may suggest a slower pace of paying off suppliers compared to the previous period.

Looking further back, the trend in payables turnover ratios over the past few quarters has been somewhat volatile. For instance, the ratio peaked at 46.01 in the quarter ending June 30, 2020, before gradually decreasing. This could indicate changes in the company's payment policies or relationships with suppliers during this time.

Overall, a payables turnover ratio below industry norms could indicate that the company is taking longer to pay its suppliers, potentially straining relationships or indicating liquidity issues. Conversely, a very high ratio may suggest aggressive payables management, which could strain supplier relationships or indicate a lack of bargaining power.

It is important for investors and analysts to monitor the payables turnover ratio over time to understand changes in the company's payment practices and their potential impact on liquidity and supplier relationships.