Take-Two Interactive Software Inc (TTWO)

Quick ratio

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 US$ in thousands 1,471,000 1,221,700 1,233,600 1,387,200 754,000 898,700 756,800 775,800 827,400 860,900 956,400 847,400 1,732,100 986,741 856,901 1,400,880 1,422,880 1,649,830 1,345,100 1,404,120
Short-term investments US$ in thousands 9,400 3,300 3,500 15,400 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
Receivables US$ in thousands 851,900 739,400 938,300 674,900 764,700 755,000 897,000 702,100 843,100 795,500 919,000 976,400 684,300 752,796 912,333 590,943 658,316 686,596 885,871 777,902
Total current liabilities US$ in thousands 3,615,800 2,895,100 3,200,500 2,846,300 2,406,400 2,692,400 3,000,100 2,738,000 3,851,600 3,009,800 3,467,000 3,286,700 2,104,960 2,072,340 2,566,870 2,165,330 2,234,720 2,341,790 2,325,840 2,148,740
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

March 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,471,000K + $9,400K + $851,900K) ÷ $3,615,800K
= 0.65

The quick ratio of Take-Two Interactive Software Inc has shown some fluctuations over the period from June 30, 2020, to March 31, 2025. The quick ratio measures the company's ability to cover its current liabilities with its most liquid assets, excluding inventory.

From June 30, 2020, to March 31, 2022, the quick ratio remained above 1, indicating that the company had sufficient liquid assets to cover its short-term obligations. However, there was a noticeable decline in the quick ratio from June 30, 2022, to March 31, 2025. This downward trend suggests a potential liquidity concern as the quick ratio dropped below 1, indicating that the company may have difficulty meeting its short-term financial obligations without relying on inventory.

Overall, a declining trend in the quick ratio could signal potential liquidity challenges for Take-Two Interactive Software Inc if not managed effectively. It would be important to closely monitor the company's ability to convert its liquid assets into cash to meet its short-term liabilities and maintain financial stability.