Take-Two Interactive Software Inc (TTWO)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	754,000	898,700	756,800	775,800	827,400	860,900	956,400	847,400	1,732,100	986,741	856,901	1,400,880	1,422,880	1,649,830	1,345,100	1,404,120	1,357,660	1,284,860	762,032	984,625
Short-term investments	US$ in thousands	22,000	23,500	45,100	109,200	187,000	268,600	348,000	459,200	820,100	1,479,010	1,440,630	1,135,190	1,308,690	772,683	1,040,790	880,825	644,003	699,269	742,613	557,653
Total current liabilities	US$ in thousands	2,406,400	2,692,400	3,000,100	2,738,000	3,851,600	3,009,800	3,467,000	3,286,700	2,105,000	2,072,340	2,566,870	2,165,330	2,234,720	2,341,790	2,325,840	2,148,740	2,038,540	2,096,330	2,290,230	1,942,010
Cash ratio		0.32	0.34	0.27	0.32	0.26	0.38	0.38	0.40	1.21	1.19	0.90	1.17	1.22	1.03	1.03	1.06	0.98	0.95	0.66	0.79

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 for Take-Two Interactive Software Inc has shown variation over the periods in question. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio generally indicates a stronger liquidity position for the company.

Looking at the data, the cash ratio fluctuated between 0.26 to 1.22 over the periods provided. In general, the cash ratio was relatively stable from December 2022 to September 2023, ranging from 0.32 to 0.38. A significant increase was observed in the cash ratio at the end of March 2022 to 1.21, which could indicate a temporary increase in cash reserves compared to short-term liabilities.

It is noteworthy that the cash ratio has exceeded 1 for multiple periods, indicating that Take-Two Interactive Software Inc had more cash and cash equivalents on hand than its short-term obligations during these specific periods. This suggests a healthy liquidity position, providing a buffer against financial uncertainties and potential short-term demands on the company's resources.

However, it is essential to consider other liquidity ratios and financial metrics alongside the cash ratio to gain a comprehensive understanding of Take-Two Interactive Software Inc's overall financial health and liquidity management.