Take-Two Interactive Software Inc (TTWO)

Current ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Total current assets	US$ in thousands	2,259,700	2,508,100	3,871,100	4,220,520	3,493,350
Total current liabilities	US$ in thousands	2,406,400	3,851,600	2,105,000	2,234,720	2,038,540
Current ratio		0.94	0.65	1.84	1.89	1.71

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,259,700K ÷ $2,406,400K
= 0.94

The current ratio of Take-Two Interactive Software Inc has exhibited fluctuations over the past five years. As of March 31, 2024, the current ratio stands at 0.94, indicating that the company may have difficulties in meeting its short-term obligations with its current assets alone. This represents a decline from the previous year's current ratio of 0.65, suggesting a potential worsening in the company's liquidity position.

Comparing the current ratio to previous years, it is evident that Take-Two Interactive Software Inc had higher liquidity in fiscal years 2022 and 2021, with current ratios of 1.84 and 1.89 respectively. This indicates that in these years, the company had a stronger ability to cover its short-term liabilities with current assets. However, the current ratio decreased to 1.71 in fiscal year 2020, slightly lower than the ratios in 2022 and 2021.

Overall, the downward trend in the current ratio from 2020 to 2024 raises concerns about Take-Two Interactive Software Inc's short-term solvency and ability to meet its financial obligations. Further analysis of the company's liquidity position and management of current assets and liabilities may be warranted to assess the factors contributing to this trend.