Take-Two Interactive Software Inc (TTWO)

Quick ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash	US$ in thousands	754,000	827,400	1,732,100	1,422,880	1,357,660
Short-term investments	US$ in thousands	22,000	187,000	820,100	1,308,690	644,003
Receivables	US$ in thousands	679,700	763,200	579,433	552,762	592,555
Total current liabilities	US$ in thousands	2,406,400	3,851,600	2,105,000	2,234,720	2,038,540
Quick ratio		0.60	0.46	1.49	1.47	1.27

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($754,000K + $22,000K + $679,700K) ÷ $2,406,400K
= 0.60

The quick ratio of Take-Two Interactive Software Inc has fluctuated over the past five years. In the most recent fiscal year ending March 31, 2024, the quick ratio was 0.60, indicating that the company had $0.60 of liquid assets available to cover each $1 of current liabilities.

The trend in quick ratios shows a decrease from 2023 to 2024, which could raise concerns about the company's ability to meet its short-term obligations using its most liquid assets. It is important for investors and stakeholders to monitor this ratio closely as a quick ratio below 1 may suggest potential liquidity issues.

Furthermore, the ratio in 2024 is significantly lower than the ratios in 2022 and 2021, indicating that the company may have experienced a decrease in its ability to meet short-term obligations quickly. Management should evaluate the efficiency of cash management and working capital to improve the quick ratio and ensure the company's financial health.