Take-Two Interactive Software Inc (TTWO)

Liquidity ratios

Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Current ratio 0.78 0.94 0.65 1.84 1.89
Quick ratio 0.65 0.64 0.48 1.54 1.52
Cash ratio 0.41 0.32 0.26 1.21 1.22

Based on the provided data, let's analyze the liquidity ratios of Take-Two Interactive Software Inc over the years:

1. Current Ratio:
- The current ratio measures the company's ability to meet its short-term obligations with its short-term assets. A current ratio above 1 indicates that the company has more current assets than current liabilities.
- Take-Two Interactive's current ratio has fluctuated over the years, with a slight decrease from 1.89 in March 2021 to 0.94 in March 2024, before increasing to 0.94 in March 2025.
- Despite the fluctuations, the company generally maintained a current ratio above 1 until March 2023 when it decreased significantly to 0.65, potentially signaling a liquidity concern.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, is a more stringent measure of liquidity as it excludes inventory from current assets.
- Take-Two Interactive's quick ratio followed a similar trend to the current ratio, with a decrease from 1.52 in March 2021 to 0.64 in March 2024 before increasing to 0.64 in March 2025.
- The company's quick ratio also dropped below 1 in March 2023, indicating a potential challenge in meeting short-term obligations without relying on inventory.

3. Cash Ratio:
- The cash ratio is the most conservative liquidity ratio, focusing solely on the company's ability to cover current liabilities with cash and cash equivalents.
- Take-Two Interactive's cash ratio showed a significant decline from 1.22 in March 2021 to 0.32 in March 2024, before stabilizing at 0.32 in March 2025.
- The decline in the cash ratio suggests a reduction in the company's ability to cover its short-term obligations with cash, potentially indicating a need to manage liquidity more effectively.

In summary, Take-Two Interactive Software Inc experienced fluctuations in its liquidity ratios over the years, with a notable decline in liquidity in March 2023. The company should monitor its liquidity position closely to ensure it can meet its short-term obligations effectively.


Additional liquidity measure

Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Cash conversion cycle days 27.56 29.17 40.83 44.48 58.58

Take-Two Interactive Software Inc has shown a downward trend in its cash conversion cycle over the years. As of March 31, 2021, the company had a cash conversion cycle of 58.58 days, indicating that it took almost two months to convert its investments in inventory and accounts receivable into cash.

By March 31, 2022, the cash conversion cycle had decreased to 44.48 days, showing an improvement in efficiency in converting its assets into cash. This trend continued in the subsequent years, with further reductions to 40.83 days as of March 31, 2023, and then to 29.17 days by March 31, 2024.

Notably, as of March 31, 2025, the cash conversion cycle for Take-Two Interactive Software Inc reached 0.00 days. This implies that the company has optimized its working capital management, resulting in an immediate conversion of investments into cash. Such a low cash conversion cycle can indicate strong liquidity and efficiency in the company's operations.

Overall, the decreasing trend in the cash conversion cycle for Take-Two Interactive Software Inc suggests improvements in managing its working capital and converting assets into cash more quickly, highlighting positive developments in its financial performance and operational efficiency.