Take-Two Interactive Software Inc (TTWO)

Cash conversion cycle

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Days of inventory on hand (DOH)	days	—	—	—	—	—	19.39	45.21	42.74	—	—	—	—	3.14	3.01	3.25	3.02	4.22	5.91	5.64	4.00
Days of sales outstanding (DSO)	days	55.19	49.51	62.76	45.59	52.18	51.07	60.21	46.32	57.52	60.07	77.48	93.94	71.26	80.48	98.76	64.29	71.24	76.08	96.14	84.01
Number of days of payables	days	27.64	22.68	26.17	22.78	25.64	15.95	14.04	14.29	16.69	24.70	31.30	44.45	29.93	25.95	21.55	17.65	16.88	22.14	17.83	11.58
Cash conversion cycle	days	27.56	26.83	36.59	22.81	26.54	54.51	91.38	74.77	40.83	35.37	46.19	49.49	44.48	57.53	80.46	49.66	58.58	59.85	83.96	76.43

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 55.19 – 27.64
= 27.56

The cash conversion cycle (CCC) of Take-Two Interactive Software Inc has shown fluctuations over the analyzed periods. The CCC, which represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, is an important indicator of operational efficiency and liquidity management.

Take-Two's CCC was relatively high in the earlier periods but showed a decreasing trend towards the middle of the analyzed timeframe. The company's CCC decreased significantly from 76.43 days on June 30, 2020, to its lowest point of 22.81 days on June 30, 2024, indicating an improvement in the efficiency of managing its working capital during this period.

However, the CCC started to increase again towards the end of the analyzed period, with fluctuations in the range of 26.54 days on March 31, 2024, to 91.38 days on September 30, 2023. The increased CCC may indicate challenges in managing inventory, collections, or payment cycles.

Overall, Take-Two Interactive Software Inc should continue to closely monitor its cash conversion cycle to ensure efficient management of working capital and strive for a balance between maximizing sales revenues and optimizing the use of resources to enhance overall financial performance and liquidity.