Take-Two Interactive Software Inc (TTWO)

Cash conversion cycle

		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
Cash conversion cycle	days	23.37	48.59	86.04	69.69	105.02	73.52	164.94	139.98	44.88	49.17	73.22	43.10	51.71	53.73	77.25	68.82	62.79	72.83	87.70	40.65

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 fluctuations over the past few quarters. The trend indicates that the company's ability to convert its investments in inventory and accounts receivable into cash has varied significantly.

The company experienced a relatively low cash conversion cycle of 23.37 days at the end of March 2024, which suggests that it efficiently managed its working capital during that period. However, the cycle increased to 105.02 days at the end of March 2023, reflecting a longer time taken to convert inventory and accounts receivable into cash.

The highest cash conversion cycle was recorded at 164.94 days at the end of September 2022, indicating a significant delay in cash conversion during that quarter. This was followed by a notable improvement with a cycle of 40.65 days at the end of September 2019, suggesting a more efficient working capital management.

Overall, the fluctuating cash conversion cycle of Take-Two Interactive Software Inc highlights the importance of effectively managing working capital to ensure optimal cash flow and operational efficiency. Further analysis of the company's inventory turnover and accounts receivable turnover ratios may provide additional insights into the efficiency of its cash conversion cycle.