Take-Two Interactive Software Inc (TTWO)

Working capital 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
Revenue (ttm)	US$ in thousands	5,349,600	5,396,400	5,437,900	5,532,200	5,349,900	4,822,896	4,318,396	3,783,096	3,493,996	3,420,892	3,372,649	3,354,562	3,369,915	3,284,364	3,358,880	3,378,818	3,087,326	2,865,792	3,195,769	2,828,138
Total current assets	US$ in thousands	2,259,700	2,218,500	2,536,800	2,255,000	2,508,100	2,606,700	3,251,100	3,036,000	3,871,100	3,705,010	4,243,460	4,013,610	4,220,520	4,159,960	3,932,100	3,686,930	3,493,350	3,435,040	3,388,330	2,821,080
Total current liabilities	US$ in thousands	2,406,400	2,692,400	3,000,100	2,738,000	3,851,600	3,009,800	3,467,000	3,286,700	2,105,000	2,072,340	2,566,870	2,165,330	2,234,720	2,341,790	2,325,840	2,148,740	2,038,540	2,096,330	2,290,230	1,942,010
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

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,349,600K ÷ ($2,259,700K – $2,406,400K)
= —

Take-Two Interactive Software Inc's working capital turnover has been fluctuating over the past few quarters. The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio indicates better efficiency in managing working capital.

Looking at the trend, the working capital turnover ratio was relatively stable around 2.0 in 2021, indicating that for every dollar of working capital, the company generated around $2.0 of revenue. However, the ratio saw a decline in the first half of 2022, possibly suggesting a decrease in efficiency in managing working capital during that period.

In the second half of 2022, the ratio improved to around 2.0, showing better utilization of working capital. This improvement continued into 2023, with the ratio reaching above 2.0 again. This indicates that the company was able to generate more revenue for each dollar of working capital, reflecting improved efficiency in working capital management.

Overall, the trend in Take-Two Interactive Software Inc's working capital turnover suggests fluctuations in the company's ability to efficiently utilize its working capital to drive revenue generation. It is important for the company to continue monitoring and managing its working capital effectively to sustain and potentially improve this ratio in the future.