Take-Two Interactive Software Inc (TTWO)

Cash ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cash and cash equivalents	US$ in thousands	1,471,000	754,000	827,400	1,732,100	1,422,880
Short-term investments	US$ in thousands	9,400	22,000	187,000	820,100	1,308,690
Total current liabilities	US$ in thousands	3,615,800	2,406,400	3,851,600	2,104,960	2,234,720
Cash ratio		0.41	0.32	0.26	1.21	1.22

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,471,000K + $9,400K) ÷ $3,615,800K
= 0.41

The cash ratio of Take-Two Interactive Software Inc has shown a fluctuating trend over the past few years. As of March 31, 2021, the company had a strong cash ratio of 1.22, indicating that it had $1.22 in cash and cash equivalents for every $1 of current liabilities. This suggests that Take-Two Interactive had a comfortable level of liquidity to cover its short-term obligations at that time.

However, the cash ratio decreased slightly to 1.21 as of March 31, 2022. While still above 1, this slight dip may indicate a minor decrease in liquidity compared to the previous year.

The most significant change occurred as of March 31, 2023, with a sharp drop in the cash ratio to 0.26. This significant decrease suggests that Take-Two Interactive's liquidity position weakened considerably, indicating that the company may have had challenges in meeting its short-term obligations with its available cash and cash equivalents.

The cash ratio improved slightly to 0.32 as of March 31, 2024, but it still remained relatively low compared to the previous years. This improvement may indicate a partial recovery in Take-Two Interactive's liquidity position, although it is still not at the levels seen in 2021 and 2022.

As of March 31, 2025, the cash ratio data is not available (marked as "—"), making it challenging to assess Take-Two Interactive's liquidity position for that year.

In conclusion, the analysis of Take-Two Interactive Software Inc's cash ratio reveals fluctuations in the company's liquidity position over the years, with significant variations and potential challenges in meeting short-term obligations in certain periods.