Take-Two Interactive Software Inc (TTWO)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — 18.42 8.02 8.48 5.24 10.05 3.19 3.46 198.76 139.44 148.49 178.32 134.32 92.39 94.24 133.19 122.47 90.02 67.82 99.24
Receivables turnover 7.87 8.10 6.68 8.89 7.01 6.78 5.19 5.97 6.03 5.28 4.19 6.89 6.10 5.65 4.26 4.93 5.21 4.43 3.72 8.02
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
Working capital turnover — — — — — — — — 1.98 2.10 2.01 1.81 1.70 1.81 2.09 2.20 2.12 2.14 2.91 3.22

Take-Two Interactive Software Inc's activity ratios provide insights into how efficiently the company manages its inventory, receivables, payables, and working capital.

1. Inventory turnover: This ratio indicates how many times during a period the company sells and replaces its inventory. The trend indicates that there was a significant increase in inventory turnover from Q4 2022 to Q1 2022, followed by fluctuations in subsequent quarters. The company saw a sharp decrease in inventory turnover in the latest quarter compared to the previous quarter.

2. Receivables turnover: This ratio reflects how quickly the company collects cash from its credit sales. The trend shows relatively stable performance with some fluctuations over the quarters. There was a slight decline in receivables turnover in the latest quarter, indicating a longer collection period compared to the previous quarter.

3. Payables turnover: This ratio measures how quickly the company pays its suppliers. The trend shows fluctuations but with an overall increasing trend from Q4 2019 to Q1 2022. However, there was a noticeable decrease in payables turnover in the latest quarter, suggesting the company is taking longer to pay its suppliers compared to the previous quarter.

4. Working capital turnover: This ratio assesses how effectively the company utilizes its working capital to generate sales. The trend shows fluctuations but with an overall decreasing trend from Q4 2019 to Q2 2020, followed by some volatility in subsequent quarters. The latest quarter saw a slight decrease in working capital turnover, indicating a lower level of sales generated per unit of working capital employed compared to the previous quarter.

In summary, Take-Two Interactive Software Inc's activity ratios reflect fluctuations and trends in the management of its inventory, receivables, payables, and working capital. The company should closely monitor these ratios to ensure efficient operations and cash management.

Average number of days

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
Days of inventory on hand (DOH) days — 19.81 45.50 43.03 69.64 36.30 114.53 105.52 1.84 2.62 2.46 2.05 2.72 3.95 3.87 2.74 2.98 4.05 5.38 3.68
Days of sales outstanding (DSO) days 46.38 45.07 54.67 41.05 52.07 53.82 70.27 61.14 60.53 69.13 87.06 53.01 59.87 64.58 85.61 74.02 70.05 82.46 98.06 45.51
Number of days of payables days 23.01 16.29 14.13 14.39 16.69 16.60 19.86 26.68 17.48 22.58 16.30 11.96 10.87 14.80 12.24 7.93 10.24 13.69 15.74 8.54

Take-Two Interactive Software Inc's activity ratios provide insights into its efficiency in managing its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- The DOH has fluctuated over the periods, ranging from 1.84 days to 114.53 days. The significant variations indicate potential issues in inventory management, such as overstocking or underutilization of inventory.

2. Days of Sales Outstanding (DSO):
- The DSO also varies widely from 41.05 days to 98.06 days, showing inconsistencies in collecting receivables. A higher DSO indicates a longer time to collect payments from customers, potentially impacting cash flow.

3. Number of Days of Payables:
- The days of payables have fluctuated between 7.93 days and 26.68 days. A lower number of days of payables suggests that the company is paying its suppliers more quickly, while a higher number indicates a longer payment period.

Overall, Take-Two Interactive Software Inc should focus on improving its inventory management to reduce excess inventory levels and optimize its working capital cycle. Additionally, efforts to reduce the days of sales outstanding and manage payables effectively can enhance cash flow and overall operational efficiency.

Long-term

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
Fixed asset turnover 13.01 13.48 13.87 13.63 13.28 13.37 12.94 12.60 14.44 14.50 14.59 14.92 22.56 24.28 25.18 26.21 23.41 22.49 24.74 22.38
Total asset turnover 0.44 0.36 0.36 0.36 0.34 0.29 0.25 0.21 0.53 0.54 0.51 0.53 0.56 0.55 0.58 0.63 0.62 0.59 0.66 0.65

Take-Two Interactive Software Inc's fixed asset turnover has shown a fluctuating trend over the periods examined. The company's fixed asset turnover ratio has generally remained high, indicating efficient utilization of fixed assets to generate sales. However, there are some variations in the ratio over time.

On the other hand, the total asset turnover ratio depicts a more stable trend, albeit at a lower level compared to the fixed asset turnover. This ratio signifies the company's ability to generate sales relative to its total assets. Take-Two Interactive Software Inc's total asset turnover has shown a gradual increase over the periods examined, indicating improved efficiency in utilizing its total assets to generate revenue.

Overall, the company's fixed asset turnover suggests effective management of fixed assets to drive revenue generation, while the total asset turnover highlights a positive trend in the company's ability to convert its total assets into sales.