Take-Two Interactive Software Inc (TTWO)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	—	—	—	—	—	18.82	8.07	8.54	—	—	—	—	116.11	121.29	112.27	120.80	86.52	61.76	64.67	91.23
Receivables turnover	6.61	7.37	5.82	8.01	7.00	7.15	6.06	7.88	6.35	6.08	4.71	3.89	5.12	4.54	3.70	5.68	5.12	4.80	3.80	4.34
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
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	1.98	2.09	2.01	1.82	1.70	1.81	2.09	2.20

Take-Two Interactive Software Inc's activity ratios provide insight into the efficiency of the company's operations:

1. Inventory Turnover: Take-Two's inventory turnover has shown fluctuations over the years, with a generally increasing trend until March 2023, after which it dropped significantly. This indicates that the company was able to sell its inventory more frequently in earlier years but faced challenges in managing and selling its inventory efficiently in recent periods.

2. Receivables Turnover: The receivables turnover ratio reflects the company's ability to collect payment from its customers. Take-Two's receivables turnover ratio has been relatively stable over time, with some fluctuations. The increasing trend from June 2023 to March 2024 suggests that the company was collecting payments from customers at a faster rate during this period.

3. Payables Turnover: The payables turnover ratio measures how efficiently the company manages its accounts payable. Take-Two's payables turnover ratio has shown a declining trend from June 2020 to March 2025, indicating that the company took longer to pay its suppliers over time. This could also suggest a potential strain on liquidity or changes in the company's supplier relationships.

4. Working Capital Turnover: The working capital turnover ratio indicates how effectively the company is utilizing its working capital to generate sales. Take-Two's working capital turnover ratio has varied over the years, with some periods showing a higher turnover rate than others. The ratios from June 2020 to December 2021 were relatively stable, indicating a consistent use of working capital to drive sales. However, the lack of data from June 2022 onwards makes it challenging to assess the recent performance in terms of working capital efficiency.

Overall, analyzing Take-Two Interactive Software Inc's activity ratios provides valuable insights into the company's operational efficiency and financial management practices, highlighting areas of strength and potential areas for improvement.

Average number of days

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	19.39	45.21	42.74	—	—	—	—	3.14	3.01	3.25	3.02	4.22	5.91	5.64	4.00
Days of sales outstanding (DSO)	days	55.19	49.51	62.76	45.59	52.18	51.07	60.21	46.32	57.52	60.07	77.48	93.94	71.26	80.48	98.76	64.29	71.24	76.08	96.14	84.01
Number of days of payables	days	27.64	22.68	26.17	22.78	25.64	15.95	14.04	14.29	16.69	24.70	31.30	44.45	29.93	25.95	21.55	17.65	16.88	22.14	17.83	11.58

Take-Two Interactive Software Inc's activity ratios provide insights into its efficiency in managing its assets and liabilities.

1. Days of Inventory on Hand (DOH): This ratio measures how many days, on average, the company holds its inventory before selling it. A lower DOH is generally more favorable as it indicates a faster inventory turnover. The trend for Take-Two Interactive shows a relatively stable DOH around 3 to 5 days until June 30, 2023 when there is a significant increase to 42.74 days, suggesting potential issues with inventory management.

2. Days of Sales Outstanding (DSO): DSO represents the average number of days it takes for the company to collect revenue after making a sale. A lower DSO is usually better as it indicates faster collection of receivables. Take-Two Interactive's DSO varies over the years with a major improvement from 98.76 days on September 30, 2021, to 46.32 days on June 30, 2023, before increasing slightly to 55.19 days on March 31, 2025.

3. Number of Days of Payables: This ratio reflects the average number of days the company takes to pay its suppliers. A longer payment period is generally more advantageous as it allows the company to hold onto its cash longer. Take-Two Interactive's payables period shows fluctuations over the years, with an increase from 14.29 days on June 30, 2023, to 27.64 days on March 31, 2025, indicating the company took longer to settle its payables.

Overall, the company's activity ratios demonstrate mixed performance in managing its inventory, receivables, and payables efficiently. Monitoring these ratios over time can help identify operational improvements or potential liquidity challenges.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	—	—	13.63	13.28	13.40	6.85	6.25	14.48	7.61	7.66	8.64	22.58	24.35	25.21	26.22
Total asset turnover	0.61	0.43	0.42	0.42	0.44	0.36	0.36	0.36	0.34	0.29	0.25	0.21	0.54	0.54	0.51	0.53	0.56	0.55	0.58	0.63

Take-Two Interactive Software Inc's Fixed Asset Turnover ratio measures the efficiency of the company in generating revenue from its investment in fixed assets. The trend in the Fixed Asset Turnover ratio shows a decrease from 26.22 in June 2020 to 13.63 in June 2023, indicating a decline in the company's ability to generate revenue from its fixed assets. The ratio then stabilizes around 13.40 in December 2022 and March 2023 before the data becomes unavailable.

On the other hand, the Total Asset Turnover ratio reflects how efficiently the company is utilizing all its assets to generate sales. The ratio fluctuates over the period, reaching a low of 0.21 in June 2022 and gradually increasing to 0.61 in March 2025. The overall trend suggests that Take-Two Interactive Software Inc has improved its effectiveness in generating sales relative to its total assets.

The analysis of the long-term activity ratios indicates that while the company's efficiency in generating revenue from fixed assets has shown a declining trend, its ability to utilize all assets to generate sales has been improving over the period analyzed.