Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Take-Two Interactive Software Inc., liquidity ratios
Based on: 10-K (reporting date: 2025-03-31), 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
A significant deterioration in liquidity is observed between March 31, 2022, and March 31, 2023, marking a transition from a strong liquidity position to one where current liabilities exceed current assets. While the period from 2020 to 2022 was characterized by healthy cushions across all metrics, the subsequent years show a sustained decline, with ratios remaining consistently below 1.0 through March 31, 2025.
- Current Ratio
- The current ratio peaked at 1.89 in 2021 before experiencing a sharp decline to 0.65 in 2023. Despite a temporary recovery to 0.94 in 2024, the ratio fell again to 0.78 by March 31, 2025. This trend indicates that the company no longer maintains sufficient current assets to cover its short-term obligations on a one-to-one basis.
- Quick Ratio
- Following a similar trajectory to the current ratio, the quick ratio moved from a high of 1.71 in 2021 to a low of 0.54 in 2023. The ratio reached 0.71 in 2024 before ending the period at 0.62. The close alignment between the current and quick ratios suggests that the liquidity decline is not primarily driven by inventory fluctuations, but rather by a broader reduction in liquid assets or an increase in short-term debt.
- Cash Ratio
- The cash ratio exhibits the most pronounced volatility, dropping from 1.38 in 2022 to 0.34 in 2023. Although it experienced a marginal increase to 0.43 in 2024, it concluded at 0.41 in 2025. The significant decrease in this ratio reflects a substantial reduction in the company's ability to meet immediate liabilities using only its most liquid cash assets.
The uniformity of the downward trend across the current, quick, and cash ratios suggests a systemic shift in the balance sheet structure. The transition from ratios well above 1.0 to values consistently below 1.0 indicates a heightened reliance on operational cash flow or external financing to meet short-term obligations compared to the 2020-2022 period.
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Current Ratio
Take-Two Interactive Software Inc., current ratio calculation, comparison to benchmarks
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 2,815,900) | 2,259,700) | 2,508,100) | 3,871,088) | 4,220,515) | 3,493,351) | |
| Current liabilities | 3,615,800) | 2,406,400) | 3,851,600) | 2,104,964) | 2,234,715) | 2,038,539) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 0.78 | 0.94 | 0.65 | 1.84 | 1.89 | 1.71 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Alphabet Inc. | 2.01 | 1.84 | 2.10 | 2.38 | 2.93 | — | |
| Comcast Corp. | 0.88 | 0.68 | 0.60 | 0.78 | 0.85 | — | |
| Meta Platforms Inc. | 2.60 | 2.98 | 2.67 | 2.20 | 3.15 | — | |
| Netflix Inc. | 1.19 | 1.22 | 1.12 | 1.17 | 0.95 | — | |
| Walt Disney Co. | 0.71 | 0.73 | 1.05 | 1.00 | 1.08 | 1.32 | |
| Current Ratio, Sector | |||||||
| Media & Entertainment | 1.71 | 1.58 | 1.67 | 1.76 | 2.08 | — | |
| Current Ratio, Industry | |||||||
| Communication Services | 1.41 | 1.23 | 1.30 | 1.28 | 1.41 | — | |
Based on: 10-K (reporting date: 2025-03-31), 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 2,815,900 ÷ 3,615,800 = 0.78
2 Click competitor name to see calculations.
The liquidity profile of the organization demonstrates a significant transition from a strong solvency position to a period of heightened short-term financial pressure between March 31, 2020, and March 31, 2025. The data indicates a shift where current assets, which previously comfortably covered current obligations, are now insufficient to meet total short-term liabilities.
- Current Assets Trend
- Current assets peaked at US$ 4,220,515 thousand on March 31, 2021, followed by a consistent downward trajectory over the next three years, reaching a low of US$ 2,259,700 thousand by March 31, 2024. A partial recovery was observed by March 31, 2025, with assets increasing to US$ 2,815,900 thousand.
- Current Liabilities Volatility
- Short-term obligations remained relatively stable between 2020 and 2022, staying within the US$ 2.0 billion to US$ 2.2 billion range. A substantial spike occurred on March 31, 2023, with liabilities rising to US$ 3,851,600 thousand. Despite a temporary decrease to US$ 2,406,400 thousand in 2024, liabilities rose again to US$ 3,615,800 thousand by March 31, 2025.
- Current Ratio Analysis
- The current ratio reflects two distinct operational phases. From 2020 to 2022, the ratio remained healthy, peaking at 1.89 in 2021, indicating a strong capacity to cover short-term debts. A sharp contraction occurred in 2023, with the ratio dropping to 0.65. While a slight recovery to 0.94 was noted in 2024, the ratio declined again to 0.78 by March 31, 2025. This sustained level below 1.0 suggests that the organization has faced ongoing challenges in maintaining sufficient liquid assets to cover its immediate liabilities.
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Quick Ratio
Take-Two Interactive Software Inc., quick ratio calculation, comparison to benchmarks
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 1,456,100) | 754,000) | 827,400) | 1,732,047) | 1,422,884) | 1,357,664) | |
| Short-term investments | 9,400) | 22,000) | 187,000) | 820,060) | 1,308,692) | 644,003) | |
| Restricted cash and cash equivalents | 14,900) | 252,100) | 307,600) | 359,832) | 538,822) | 546,604) | |
| Accounts receivable, net of allowances | 771,100) | 679,700) | 763,200) | 579,433) | 552,762) | 592,555) | |
| Total quick assets | 2,251,500) | 1,707,800) | 2,085,200) | 3,491,372) | 3,823,160) | 3,140,826) | |
| Current liabilities | 3,615,800) | 2,406,400) | 3,851,600) | 2,104,964) | 2,234,715) | 2,038,539) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.62 | 0.71 | 0.54 | 1.66 | 1.71 | 1.54 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Alphabet Inc. | 1.85 | 1.66 | 1.94 | 2.22 | 2.79 | — | |
| Comcast Corp. | 0.70 | 0.53 | 0.50 | 0.62 | 0.71 | — | |
| Meta Platforms Inc. | 2.42 | 2.82 | 2.55 | 2.01 | 2.94 | — | |
| Netflix Inc. | 1.14 | 1.18 | 1.07 | 1.12 | 0.91 | — | |
| Walt Disney Co. | 0.55 | 0.54 | 0.85 | 0.83 | 0.94 | 1.15 | |
| Quick Ratio, Sector | |||||||
| Media & Entertainment | 1.55 | 1.42 | 1.53 | 1.61 | 1.94 | — | |
| Quick Ratio, Industry | |||||||
| Communication Services | 1.19 | 1.04 | 1.11 | 1.08 | 1.22 | — | |
Based on: 10-K (reporting date: 2025-03-31), 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,251,500 ÷ 3,615,800 = 0.62
2 Click competitor name to see calculations.
The liquidity position of the entity has undergone a significant structural shift over the analyzed six-year period, transitioning from a state of robust short-term coverage to a position of restricted liquidity.
- Quick Ratio Trajectory
- Between March 31, 2020, and March 31, 2022, the quick ratio remained consistently strong, peaking at 1.71 in 2021. This indicates that during this interval, the entity maintained a substantial cushion of liquid assets to cover short-term obligations. A precipitous decline occurred by March 31, 2023, when the ratio fell to 0.54. Despite a marginal recovery to 0.71 in 2024, the ratio retreated to 0.62 by March 31, 2025, signaling that the entity now holds significantly fewer liquid assets than are required to satisfy its current liabilities immediately.
- Quick Asset Trends
- Total quick assets reached a maximum of approximately US$ 3.82 billion in 2021 before trending downward to a low of approximately US$ 1.71 billion in 2024. While there was a subsequent increase to US$ 2.25 billion by March 31, 2025, the overall trend reflects a diminished liquid asset base compared to the 2020-2022 period.
- Current Liability Dynamics
- Current liabilities exhibited relative stability between 2020 and 2022, ranging from approximately US$ 2.04 billion to US$ 2.23 billion. A sharp volatility pattern emerged starting in 2023, with liabilities surging to US$ 3.85 billion, which acted as a primary driver for the collapse of the quick ratio. Although liabilities decreased to US$ 2.41 billion in 2024, they rose again to US$ 3.62 billion by March 31, 2025, creating persistent pressure on the entity's short-term solvency.
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Cash Ratio
Take-Two Interactive Software Inc., cash ratio calculation, comparison to benchmarks
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 1,456,100) | 754,000) | 827,400) | 1,732,047) | 1,422,884) | 1,357,664) | |
| Short-term investments | 9,400) | 22,000) | 187,000) | 820,060) | 1,308,692) | 644,003) | |
| Restricted cash and cash equivalents | 14,900) | 252,100) | 307,600) | 359,832) | 538,822) | 546,604) | |
| Total cash assets | 1,480,400) | 1,028,100) | 1,322,000) | 2,911,939) | 3,270,398) | 2,548,271) | |
| Current liabilities | 3,615,800) | 2,406,400) | 3,851,600) | 2,104,964) | 2,234,715) | 2,038,539) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.41 | 0.43 | 0.34 | 1.38 | 1.46 | 1.25 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Alphabet Inc. | 1.23 | 1.07 | 1.36 | 1.64 | 2.17 | — | |
| Comcast Corp. | 0.28 | 0.18 | 0.15 | 0.17 | 0.30 | — | |
| Meta Platforms Inc. | 1.95 | 2.32 | 2.05 | 1.51 | 2.27 | — | |
| Netflix Inc. | 0.83 | 0.89 | 0.81 | 0.76 | 0.71 | — | |
| Walt Disney Co. | 0.17 | 0.17 | 0.46 | 0.40 | 0.51 | 0.67 | |
| Cash Ratio, Sector | |||||||
| Media & Entertainment | 1.04 | 0.95 | 1.05 | 1.10 | 1.42 | — | |
| Cash Ratio, Industry | |||||||
| Communication Services | 0.76 | 0.62 | 0.68 | 0.64 | 0.80 | — | |
Based on: 10-K (reporting date: 2025-03-31), 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,480,400 ÷ 3,615,800 = 0.41
2 Click competitor name to see calculations.
A significant transition in the immediate liquidity position is evident between March 31, 2020, and March 31, 2025. The financial profile shifted from a state of high cash surplus relative to short-term obligations to a more constrained liquidity posture.
- Cash Asset Trends
- Total cash assets peaked at US$ 3.27 billion in 2021 before entering a period of decline, reaching a low of US$ 1.03 billion by March 31, 2024. A moderate recovery to US$ 1.48 billion was recorded by March 31, 2025, though this remains significantly below the levels seen in the 2020-2022 period.
- Current Liability Dynamics
- Current liabilities remained relatively stable between 2020 and 2022, hovering around US$ 2.1 billion. A sharp increase to US$ 3.85 billion occurred in 2023, followed by a temporary reduction in 2024 and a subsequent rise back to US$ 3.62 billion in 2025. This volatility in short-term obligations has placed downward pressure on liquidity metrics.
- Cash Ratio Performance
- The cash ratio demonstrated strong liquidity from 2020 to 2022, maintaining values above 1.0 and peaking at 1.46 in 2021, indicating that current liabilities were fully covered by cash assets. A critical inflection point occurred in 2023, when the ratio dropped precipitously to 0.34. Despite a marginal improvement to 0.43 in 2024, the ratio concluded the period at 0.41 in 2025, signaling that the company now relies on other current assets or financing to meet its short-term obligations, as cash alone covers approximately 41% of current liabilities.
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