Take-Two Interactive Software Inc (TTWO)

Quick ratio

		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	US$ in thousands	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	1,357,660	1,284,860	762,032	984,625
Short-term investments	US$ in thousands	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	644,003	699,269	742,613	557,653
Receivables	US$ in thousands	679,700	666,300	814,500	622,200	763,200	711,100	831,400	633,700	579,433	647,907	804,468	487,171	552,762	581,136	787,818	685,169	592,555	647,460	858,597	352,625
Total current liabilities	US$ in thousands	2,406,400	2,692,400	3,000,100	2,738,000	3,851,600	3,009,800	3,467,000	3,286,700	2,105,000	2,072,340	2,566,870	2,165,330	2,234,720	2,341,790	2,325,840	2,148,740	2,038,540	2,096,330	2,290,230	1,942,010
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

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 displayed fluctuations over the past few quarters. From December 2021 to March 2022, the quick ratio showed a significant increase from 0.59 to 1.49, indicating a substantial improvement in the company's ability to meet its short-term obligations using its most liquid assets. This improvement was sustained in the following quarter, with the quick ratio remaining above 1.0.

However, starting from September 2022, the quick ratio began to decline gradually, reaching its lowest point in March 2023 at 0.46. This downward trend suggests a potential challenge for Take-Two Interactive Software Inc in meeting its short-term obligations with its quick assets alone.

Subsequently, the quick ratio showed some recovery in the following quarters but remained below 1.0, indicating that the company may still have some difficulty in meeting its immediate liabilities without relying on inventory.

Overall, the fluctuating trend in Take-Two Interactive Software Inc's quick ratio highlights the importance of closely monitoring the company's liquidity position and managing its short-term assets effectively to ensure financial stability and the ability to meet obligations as they come due.