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.