Take-Two Interactive Software Inc (TTWO)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.94 | 0.82 | 0.85 | 0.82 | 0.65 | 0.87 | 0.94 | 0.92 | 1.84 | 1.79 | 1.65 | 1.85 | 1.89 | 1.78 | 1.69 | 1.72 | 1.71 | 1.64 | 1.48 | 1.45 |
| Quick ratio | 0.60 | 0.59 | 0.54 | 0.55 | 0.46 | 0.61 | 0.62 | 0.59 | 1.49 | 1.50 | 1.21 | 1.40 | 1.47 | 1.28 | 1.36 | 1.38 | 1.27 | 1.26 | 1.03 | 0.98 |
| 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 |
Take-Two Interactive Software Inc's liquidity ratios provide insights into its ability to meet short-term obligations and manage current liabilities. The current ratio, which compares current assets to current liabilities, has shown fluctuation over the periods analyzed, indicating varying levels of liquidity. The ratio has been consistently below 1, ranging from 0.65 to 1.84, with the most recent figure at 0.94 as of March 31, 2024.
The quick ratio, a more stringent measure of liquidity excluding inventories from current assets, has also displayed fluctuation over time. The quick ratio has ranged from 0.46 to 1.50, with the latest figure reported at 0.60 as of March 31, 2024. This implies that Take-Two Interactive may have limited ability to cover its short-term obligations with its most liquid assets.
Furthermore, the cash ratio, which specifically assesses the company's ability to cover current liabilities with its cash and cash equivalents, has varied between 0.26 and 1.22 over the periods reviewed. As of March 31, 2024, the cash ratio stands at 0.32, indicating a relatively low level of cash reserves compared to current liabilities.
Overall, based on the liquidity ratios analyzed, Take-Two Interactive Software Inc has shown some fluctuations in its ability to meet short-term obligations, with the most recent data suggesting that the company may have challenges in covering its current liabilities with its current assets, excluding inventories. Management should closely monitor liquidity levels to ensure the company's financial health and ability to meet its short-term commitments.
Additional liquidity measure
| 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 conversion cycle | days | 23.37 | 48.59 | 86.04 | 69.69 | 105.02 | 73.52 | 164.94 | 139.98 | 44.88 | 49.17 | 73.22 | 43.10 | 51.71 | 53.73 | 77.25 | 68.82 | 62.79 | 72.83 | 87.70 | 40.65 |
The cash conversion cycle of Take-Two Interactive Software Inc has shown fluctuations over the past few quarters. The trend indicates that the company's ability to convert its investments in inventory and accounts receivable into cash is improving, as the cash conversion cycle has been decreasing overall.
In particular, the company's cash conversion cycle decreased significantly from 164.94 days in September 2022 to 23.37 days in March 2024, a positive sign of efficiency in managing working capital. This improvement suggests that Take-Two Interactive Software Inc has been able to streamline its operations and collect cash more quickly, which can have a positive impact on its financial health and liquidity.
However, it's important to note that there were periods, such as in June 2022 and December 2022, where the cash conversion cycle increased. This could be due to various factors such as changes in inventory management, payment terms with suppliers, or collection policies with customers.
Overall, the decreasing trend in the cash conversion cycle indicates an improvement in the company's efficiency in managing its working capital and cash flow. Further monitoring of this metric in future quarters will provide insights into the company's operational effectiveness and financial performance.