Take-Two Interactive Software Inc (TTWO)

Cash conversion cycle

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Days of inventory on hand (DOH)	days	—	69.64	1.84	2.70	2.98
Days of sales outstanding (DSO)	days	46.38	52.07	60.48	59.87	70.12
Number of days of payables	days	23.01	16.69	17.48	10.79	10.24
Cash conversion cycle	days	23.37	105.02	44.83	51.78	62.86

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 46.38 – 23.01
= 23.37

The cash conversion cycle of Take-Two Interactive Software Inc has shown significant fluctuations over the past five years.

In the most recent period as of March 31, 2024, the cash conversion cycle decreased to 23.37 days, indicating that the company is able to efficiently convert its investments in inventory and accounts receivable into cash. This shorter cycle suggests improved liquidity and operational efficiency.

In the preceding year, as of March 31, 2023, the cash conversion cycle was significantly higher at 105.02 days, reflecting a longer period in converting investments into cash. This prolonged cycle may have been influenced by challenges in managing inventory levels or delays in collecting receivables.

Going back another year to March 31, 2022, the cash conversion cycle was 44.83 days, showing a moderate improvement from the previous year. The company may have implemented certain strategies to streamline its working capital management processes during this period.

Further back to March 31, 2021, the cash conversion cycle was 51.78 days, indicating a slight increase from the prior year. This longer cycle suggests potential inefficiencies in working capital management that may have impacted the company's cash flow.

The oldest data available, as of March 31, 2020, shows a cash conversion cycle of 62.86 days. This cycle was notably longer compared to the more recent years, pointing towards historical challenges in the company's ability to efficiently manage its cash conversion processes.

In conclusion, Take-Two Interactive Software Inc has experienced fluctuations in its cash conversion cycle over the past five years, reflecting varying degrees of operational efficiency and working capital management. The company's ability to effectively manage its cash conversion cycle is vital for maintaining healthy liquidity and financial performance.