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.