Take-Two Interactive Software Inc (TTWO)

Liquidity ratios

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
Current ratio 0.78 0.83 0.85 0.90 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
Quick ratio 0.65 0.68 0.68 0.73 0.64 0.62 0.57 0.58 0.48 0.64 0.64 0.69 1.54 1.55 1.25 1.44 1.52 1.33 1.41 1.43
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

Take-Two Interactive Software Inc's liquidity ratios show fluctuations over the years. The current ratio, a measure of the company's ability to cover its short-term liabilities with its short-term assets, has been gradually decreasing from 1.72 on June 30, 2020, to 0.78 on March 31, 2025. This decreasing trend indicates potential challenges in meeting short-term obligations.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also followed a downward trajectory from 1.43 on June 30, 2020, to 0.65 on March 31, 2025. The decreasing quick ratio suggests a decreasing ability to cover immediate liabilities without relying on inventory.

Lastly, the cash ratio, which is the most conservative measure of liquidity, declined from 1.06 on June 30, 2020, to 0.41 on March 31, 2025. This decreasing trend highlights a reduced ability to cover current liabilities with cash and equivalents only.

Overall, the declining trends in these liquidity ratios indicate a potential liquidity risk for Take-Two Interactive Software Inc, as the company may face difficulties in meeting its short-term obligations solely relying on current assets or cash reserves. It may be essential for the company to streamline operations or consider alternative financing options to improve its liquidity position.

See also:

Take-Two Interactive Software Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days 27.56 26.83 36.59 22.81 26.54 54.51 91.38 74.77 40.83 35.37 46.19 49.49 44.48 57.53 80.46 49.66 58.58 59.85 83.96 76.43

The cash conversion cycle of Take-Two Interactive Software Inc has shown fluctuations over the reporting periods. The company's cash conversion cycle indicates the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

Analyzing the trend, we observe that the cash conversion cycle was relatively stable around 70-80 days in the years 2020 and 2021. This suggests that the company was efficient in managing its working capital during these periods. However, there was a notable improvement in the cash conversion cycle during the first half of 2022, with the cycle decreasing to around 40-50 days. This could indicate improvements in inventory management or quicker collection of receivables.

In the later periods of 2022 and early 2023, there was a further decrease in the cash conversion cycle to below 40 days, showing enhanced efficiency in converting resources to cash. This could be attributed to effective cash management practices or improvements in the sales cycle.

However, in the following quarters, particularly in September 2023, there was a significant increase in the cash conversion cycle to 91.38 days, indicating potential challenges in managing working capital efficiently during that period. Subsequently, the company managed to reduce the cash conversion cycle to around 20-30 days in the years 2024 and early 2025, demonstrating a return to a more efficient working capital management.

Overall, the trend of the cash conversion cycle for Take-Two Interactive Software Inc reflects varying levels of efficiency in managing working capital and converting investments into cash flows. It is essential for the company to continue monitoring and improving this cycle to ensure optimal financial performance and stability.