Take-Two Interactive Software Inc (TTWO)
Cash conversion cycle
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 3.14 | 4.22 |
| Days of sales outstanding (DSO) | days | 55.19 | 52.18 | 57.52 | 71.26 | 71.24 |
| Number of days of payables | days | 27.64 | 23.01 | 16.69 | 29.93 | 16.88 |
| Cash conversion cycle | days | 27.56 | 29.17 | 40.83 | 44.48 | 58.58 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 55.19 – 27.64
= 27.56
The cash conversion cycle of Take-Two Interactive Software Inc has shown a consistent improvement over the past few years, declining from 58.58 days as of March 31, 2021, to 0.00 days as of March 31, 2025. This indicates that the company has been able to efficiently manage its working capital and convert its investments in inventory and accounts receivable into cash more quickly.
The decreasing trend in the cash conversion cycle suggests that Take-Two Interactive has been successful in optimizing its operating cycle, which includes the time it takes to sell inventory, collect receivables, and pay suppliers. By shortening the cash conversion cycle, the company is able to free up cash that can be reinvested in the business or used to support other financial activities.
A cash conversion cycle of 0.00 days as of March 31, 2025, implies that Take-Two Interactive is able to generate cash almost immediately from its operating activities, which is a positive indicator of financial efficiency. The company's ability to minimize the time it takes to convert resources into cash reflects strong working capital management practices and operational effectiveness.
Peer comparison
Mar 31, 2025