Take-Two Interactive Software Inc (TTWO)

Cash ratio

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
Cash and cash equivalents US$ in thousands 1,471,000 1,221,700 1,233,600 1,387,200 754,000 898,700 756,800 775,800 827,400 860,900 956,400 847,400 1,732,100 986,741 856,901 1,400,880 1,422,880 1,649,830 1,345,100 1,404,120
Short-term investments US$ in thousands 9,400 3,300 3,500 15,400 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
Total current liabilities US$ in thousands 3,615,800 2,895,100 3,200,500 2,846,300 2,406,400 2,692,400 3,000,100 2,738,000 3,851,600 3,009,800 3,467,000 3,286,700 2,104,960 2,072,340 2,566,870 2,165,330 2,234,720 2,341,790 2,325,840 2,148,740
Cash ratio 0.41 0.42 0.39 0.49 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

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 fluctuated over the past few years, indicating changes in the company's ability to cover its short-term obligations with its available cash.

The cash ratio stood above 1 for most of 2020 and 2021, suggesting the company had more than enough cash to cover its current liabilities during these periods. However, in the later part of 2021, the ratio dropped below 1 to 0.90 and continued to decline in the following quarters, indicating a potential strain on the company's short-term liquidity.

In 2022, the cash ratio fell significantly to 0.40 by the end of June and decreased further to 0.26 by the end of March 2023. This sharp decline may signal potential cash flow challenges or increased short-term obligations that were not adequately covered by available cash.

From 2023 to 2025, the cash ratio fluctuated within a range of 0.26 to 0.49, indicating ongoing variability in the company's ability to meet short-term obligations solely with cash on hand. While the ratio improved slightly towards the end of 2024 and early 2025, it still remained below 1, suggesting a continued need for the company to supplement its liquidity with other sources of funds.

Overall, the downward trend in the cash ratio from 2021 onwards and its sustained levels below 1 in the later periods indicate potential liquidity challenges for Take-Two Interactive Software Inc that may require management's attention to ensure adequate cash flow management and liquidity optimization.