Take-Two Interactive Software Inc (TTWO)

Cash ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	754,000	827,400	1,732,100	1,422,880	1,357,660
Short-term investments	US$ in thousands	22,000	187,000	820,100	1,308,690	644,003
Total current liabilities	US$ in thousands	2,406,400	3,851,600	2,105,000	2,234,720	2,038,540
Cash ratio		0.32	0.26	1.21	1.22	0.98

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($754,000K + $22,000K) ÷ $2,406,400K
= 0.32

The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a company has more cash available to cover its short-term obligations.

Take-Two Interactive Software Inc's cash ratio has fluctuated over the past five years. In Mar 31, 2024, the cash ratio was 0.32, which means the company had $0.32 in cash and cash equivalents for every $1 of current liabilities. This indicates that Take-Two Interactive Software Inc may have some challenges in meeting its short-term obligations solely with its available cash.

Comparing the current cash ratio to previous years, we see a decreasing trend from 2022 to 2024, with a significant drop from 1.21 in 2022 to 0.32 in 2024. This suggests that the company may be experiencing a decrease in its cash reserves relative to its short-term liabilities. Additionally, the cash ratio in 2024 is lower than in 2020 and 2021, indicating a potential liquidity concern.

It would be important for Take-Two Interactive Software Inc to closely monitor its cash position and manage its short-term liquidity effectively to ensure it can meet its financial obligations as they come due.