Take-Two Interactive Software Inc. (NASDAQ:TTWO)

Goodwill

There is a significant increase in goodwill from 386,494 thousand USD in 2020 to a peak of 6,767,100 thousand USD in 2023. Subsequently, a marked decrease occurs in the following years, falling to 1,057,300 thousand USD by 2025. This pattern suggests large acquisitions or revaluations followed by disposals or impairments.

In-process research and development (IPR&D) and Indefinite-lived intangibles

Neither IPR&D nor indefinite-lived intangibles have recorded values until 2025, where both are reported at 36,000 thousand USD. This indicates a recent recognition of new intangible asset categories.

Developed Game Technology

The value began at 64,336 thousand USD in 2020, then more than doubled to 143,628 thousand USD in 2021. After a slight decrease in 2022, it surged dramatically to over 4.4 million thousand USD in 2023 before tapering slightly in subsequent years but remaining substantial above 3.6 million thousand USD. This reflects significant capitalization or acquisition of game technology assets in recent years.

Branding and Trade Names

This asset category shows consistent growth from 4,343 thousand USD in 2020 to 39,520 thousand USD in 2023. From 2023 onwards, values remain high but exhibit a slight decline to 354,000 thousand USD by 2025, indicating either amortization or impairment after peak recognition.

Game Engine Technology

Data absence prior to 2022 is noted. Starting at 30,000 thousand USD in 2022, the value increases substantially to approximately 323,000 thousand USD by 2023 and remains stable with minor fluctuations through 2025. This suggests new recognition and steady valuation of this asset type.

User Base

Starting at 6,200 thousand USD in 2021 and rising to 319,200 thousand USD in 2023, this intangible remains constant through 2025. The initial growth and stabilization imply acquisition or capitalization of customer-related assets with consistent value over time.

Developer Relationships

Recorded only from 2023 at 57,000 thousand USD and remaining unchanged through 2025, indicating recent capitalization with no subsequent changes.

Advertising Technology

This appears in 2023 at 43,000 thousand USD, constant through 2024 but absent for 2025, possibly suggesting disposal or reclassification.

Customer Relationships

First reported at 31,000 thousand USD in 2023 and sustained in 2024 but missing in 2025, following a similar trend to advertising technology, indicating potential asset movement.

Intellectual Property

This shows fluctuating values, starting at 26,109 thousand USD in 2020, peaking at 229,840 thousand USD in 2022, dropping sharply to 22,300 in 2023, and then recovering to 94,800 thousand USD by 2025. The variability may indicate impairments, amortization, or revaluation activities.

In Place Lease

Not recorded until 2022 with 2,296 thousand USD, then holding steady around 2,000 thousand USD through 2025, showing a minor but stable asset.

Analytics Technology

Relatively stable values around 30,000 thousand USD over the full period, with a slight downward trend. This stability suggests consistent valuation without significant additions or impairments.

Definite-lived intangibles, gross carrying amount

Shows a sharp increase from 125,499 thousand USD in 2020 to a peak of 5,657,400 thousand USD in 2023, decreasing afterward to 4,812,100 thousand USD by 2025. This indicates substantial additions or acquisitions focused on definite-lived intangible assets in 2023 with some reduction in subsequent years.

Accumulated amortization

The accumulated amortization grows from -74,239 thousand USD in 2020 to -2,512,100 thousand USD in 2025, reflecting increasing amortization expense consistent with the growth in intangible asset investments.

Definite-lived intangibles, net book value

Net book value grows from 51,260 thousand USD in 2020 to 4,453,200 thousand USD in 2023, then declines to 2,300,000 thousand USD by 2025. This pattern corresponds with gross carrying amount trends, showing strong asset growth and subsequent reductions likely due to amortization and impairments.

Other intangibles, net

This item closely follows the definite-lived intangible net book values, indicating that it essentially reflects the same asset group over time.

Goodwill and intangible assets, net

The total goodwill and intangible assets net value increases substantially from 437,754 thousand USD in 2020 to over 11.2 million thousand USD in 2023. After the peak, it decreases significantly to 3.4 million thousand USD by 2025. This indicates major asset growth followed by considerable write-downs or disposals within the most recent years.

The analysis of the annual financial data reveals several significant trends and fluctuations over the observed periods.

Total Assets

Reported total assets exhibited a steady increase from 4.95 billion USD in 2020 to approximately 6.55 billion USD in 2022, followed by a substantial surge to over 15.86 billion USD in 2023. After this peak, reported assets declined to around 9.18 billion USD by 2025. Adjusted total assets, which likely exclude goodwill or other intangible asset adjustments, followed a similar upward trajectory initially, rising from about 4.56 billion USD in 2020 to roughly 5.87 billion USD in 2022. However, their increase to 9.10 billion USD in 2023 was considerably less pronounced than the reported figure, and subsequently declined to approximately 8.12 billion USD by 2025. This disparity between reported and adjusted asset values suggests a considerable adjustment primarily attributed to goodwill during the peak period.

Stockholders’ Equity

Reported stockholders’ equity demonstrated growth from nearly 2.54 billion USD in 2020 to approximately 3.81 billion USD in 2022. This was followed by a dramatic increase to 9.04 billion USD in 2023, likely connected to the spike in total assets. However, thereafter, equity decreased sharply to about 2.14 billion USD by 2025. Adjusted equity figures were lower throughout the periods, rising from 2.15 billion USD in 2020 to 3.14 billion USD in 2022 before sharply declining to 1.08 billion USD in 2025. The adjusted data highlights a significant decrease in equity after 2022 when goodwill adjustments are considered, indicating possible impairment or write-downs of intangible assets.

Net Income (Loss)

Reported net income showed a positive trend between 2020 and 2021, increasing from approximately 404 million USD to nearly 589 million USD. This positive performance declined in 2022 to 418 million USD. Starting in 2023, the company experienced net losses, worsening substantially to -1.12 billion USD, then dramatically increasing in magnitude to -3.74 billion USD and -4.48 billion USD in subsequent years. Adjusted net income figures mirrored these trends but showed less severe losses for 2024 and 2025 (-1.40 billion USD and -934 million USD, respectively) compared to reported losses, suggesting adjustments predominantly related to goodwill or other non-cash items mitigating the loss magnitude.

Overall, the data indicates a period of growth culminating in 2023, with significant increases in reported assets and equity largely driven by intangible assets or goodwill. Post-2023, both reported and adjusted figures show marked declines, accompanied by escalating net losses. The adjustments highlight the impact of goodwill impairment or similar accounting treatments on financial health, underscoring challenges in sustaining profitability and asset quality in recent years.

The financial data reveals significant fluctuations and deteriorations in key profitability and efficiency metrics over the period analyzed.

Net Profit Margin

The reported net profit margin exhibited moderate stability initially, increasing from 13.09% in 2020 to a peak of 17.46% in 2021, then declined to 11.93% in 2022. From 2023 onwards, there was a steep negative trend reaching -79.5% in 2025. The adjusted margin followed a similar pattern but showed less extreme negative values in the last two periods, implying some impact of goodwill adjustments on profitability.

Total Asset Turnover

Reported total asset turnover decreased steadily from 0.62 in 2020 to a low of 0.34 in 2023 before partially recovering to 0.61 by 2025. The adjusted turnover values were consistently higher, showing a decline from 0.68 to 0.59 between 2020 and 2023, followed by an increase to 0.69 through 2025. This suggests an improvement in asset utilization when adjusting for goodwill effects in recent years.

Financial Leverage

There was a declining trend in reported financial leverage from 1.95 in 2020 to 1.72 in 2022, but it then rose to an elevated 4.29 in 2025. Adjusted financial leverage showed a similar initial decrease but then surged dramatically from 1.87 in 2022 to 7.52 by 2025, indicating increasing reliance on debt or other leveraged funds when excluding goodwill impacts.

Return on Equity (ROE)

The reported ROE was positive initially but experienced a sharp drop starting 2023, plummeting to -209.52% by 2025. Adjusted ROE similarly declined but, while negative, remained less severe than the reported figures, reaching -86.42% in 2025. This decline reflects worsening profitability and potentially heightened financial risk.

Return on Assets (ROA)

Reported ROA trends declined from 8.17% in 2020 to -48.79% in 2025. The adjusted ROA followed a comparable trajectory but with less severity in losses, ending at -11.49% in 2025. These patterns indicate diminishing asset returns and operational inefficiencies over the analyzed periods.

Overall, the data indicates a deterioration in profitability and returns starting in 2023, coinciding with increased financial leverage and fluctuating efficiency in asset usage. Adjustments for goodwill generally mitigate the extent of negative returns but confirm underlying operational challenges. The pronounced negative margins and returns suggest significant operational or financial difficulties emerging in the later years of the data set.

The financial data reflects significant volatility in the company's profitability over the analyzed periods. Initially, both reported and adjusted net income exhibited positive values, with reported net income rising from $404.5 million in 2020 to a peak of $588.9 million in 2021, followed by a decline to $418.0 million in 2022. However, from 2023 onward, there is a marked deterioration, with reported net income turning negative, showing losses that deepen substantially from -$1.12 billion in 2023 to -$4.48 billion projected in 2025.

Adjusted net income follows a similar trend but shows comparatively less severe negative figures starting from 2024. After a loss of -$1.12 billion in 2023, adjusted losses notably decrease in magnitude to -$1.40 billion in 2024 and further improve to -$933.7 million in 2025, indicating that adjustments reduce the impact of losses but do not fully reverse the downward trend.

The net profit margin metrics mirror these income trends. Reported net profit margin, which started positively at 13.09% in 2020 and peaked at 17.46% in 2021, declines sharply thereafter. By 2023, it turns negative at -21.02%, with a steep decrease continuing through 2024 and 2025 to -69.99% and -79.5%, respectively. The adjusted net profit margin shows the same initial pattern but stabilizes at less severe negative margins in the last two periods, at -26.21% in 2024 and -16.57% in 2025.

This data indicates that the company experienced a healthy profit phase in the initial years analyzed, followed by a period of significant financial distress characterized by large net losses and deep negative profit margins, particularly evident in reported figures. Adjusted figures suggest that certain non-recurring or goodwill-related charges might have heavily influenced the reported results, softening the losses when excluded. Nonetheless, the persistent negative adjusted margins indicate ongoing profitability challenges not solely attributable to goodwill impairments or similar adjustments.

The financial data reveal notable trends in both reported and goodwill-adjusted figures over the presented years. An overall increase is observed in total assets initially, followed by a decline in subsequent years.

Total Assets

Reported total assets increased steadily from approximately 4.95 billion US dollars as of March 31, 2020, to peak at around 15.86 billion US dollars by March 31, 2023. After this peak, the figure declined significantly to approximately 12.22 billion and further to 9.18 billion by March 31, 2025.

Adjusted total assets, which exclude goodwill, follow a similar but more moderate pattern. Beginning at roughly 4.56 billion US dollars in 2020, adjusted assets rose to 9.10 billion by 2023, then decreased to around 7.79 billion in 2024, before showing a slight recovery to about 8.12 billion in 2025.

Total Asset Turnover Ratios

The reported total asset turnover ratio declined from 0.62 in 2020 to 0.34 in 2023, indicating a reduction in revenue generated per unit of reported assets. However, it rebounded in subsequent years, climbing back to 0.44 in 2024 and reaching 0.61 by 2025.

In contrast, the adjusted total asset turnover ratio exhibits a more stable and generally positive trend. Starting higher at 0.68 in 2020, it moderately declined to 0.59 by 2023 but then improved consistently to 0.69 in both 2024 and 2025. This suggests a more efficient use of assets excluding goodwill in generating revenue during the latter periods.

Overall, the initial increases in asset bases correspond with a decrease in efficiency per reported asset unit, possibly reflecting asset acquisitions or goodwill increases that initially dilute turnover ratios. The subsequent reduction in assets and recovery in turnover ratios implies a period of asset optimization or write-downs. The adjusted figures provide a clearer perspective of operating efficiency, showing relatively stable and improving asset utilization excluding goodwill effects over the entire period.

The analysis of the financial data reveals notable trends in the asset base, equity, and leverage ratios over the observed periods. The figures consider both reported and goodwill-adjusted values, providing a comprehensive perspective on the company's financial position.

Total Assets

Reported total assets displayed a general upward trend from March 31, 2020, reaching a peak in 2023 with a significant increase, followed by a decline in subsequent years through 2025. The goodwill-adjusted total assets follow a similar trajectory but at a consistently lower level, indicating a considerable proportion of assets attributable to goodwill. The adjustment reveals a marked reduction in total assets post-2023 compared to the reported figures, suggesting that goodwill impairment or revaluation might have influenced the adjusted asset base.

Stockholders’ Equity

Reported stockholders’ equity rose steadily from 2020 through 2022, nearly tripling by 2023, then declined sharply over the next two years. The adjusted equity figures, which exclude goodwill, also increased initially but peaked earlier and experienced an even more pronounced decrease thereafter. This pattern suggests that goodwill significantly augmented reported equity during the peak years, and the sharp adjusted equity decline might indicate impairments or write-downs that affected owners' net interest more severely when goodwill is excluded.

Financial Leverage

Financial leverage ratios exhibit a decrease from 2020 to 2022, suggesting reduced reliance on debt relative to equity initially. However, from 2023 onwards, leverage increased considerably, especially in the adjusted figures where it rose sharply, reaching over 7 by 2025. This dramatic increase in adjusted leverage highlights a growing proportion of debt relative to the adjusted equity base, implying heightened financial risk when goodwill is excluded from equity. The discrepancy between reported and adjusted leverage indicates that goodwill adjustments significantly influence the leverage calculation, possibly masking underlying increases in indebtedness or reductions in tangible equity.

Overall, these trends illustrate a period of asset base growth followed by contraction, with equity reflecting a similar pattern but more pronounced in the adjusted figures. The increasing adjusted financial leverage in later years signals a potential rise in financial risk that may require further scrutiny, especially considering the declining adjusted equity values. The consistent divergence between reported and adjusted metrics underlines the importance of considering goodwill impacts when evaluating the company's financial stability and leverage.

Net Income Trends

Reported net income initially increased from 404,459 thousand USD in 2020 to a peak of 588,886 thousand USD in 2021, followed by a decline to 418,022 thousand USD in 2022. Subsequently, a significant downturn occurred, with reported losses beginning in 2023 and deepening sharply through 2024 and 2025, reaching a loss of -4,478,900 thousand USD in 2025. Adjusted net income follows a similar pattern, with positive income until 2022, but while the losses start in 2023 as well, the magnitude is somewhat less severe compared to the reported figures in the later years.

Stockholders’ Equity Patterns

Reported stockholders’ equity rose steadily from 2,539,244 thousand USD in 2020 to a high of 9,042,500 thousand USD in 2023, indicating a period of balance sheet strengthening. However, equity then declined drastically in 2024 and 2025, falling to 2,137,700 thousand USD by 2025. The adjusted equity figures present a different trajectory; after trending upwards from 2,152,750 thousand USD in 2020 to 3,135,105 thousand USD in 2022, they dropped sharply to 2,275,400 thousand USD in 2023 and continued downward to just over 1 million thousand USD by 2025. This suggests substantial adjustments related to goodwill or other factors impacting equity valuation from 2023 onward.

Return on Equity (ROE) Analysis

Reported ROE was positive and relatively strong from 2020 to 2022, peaking at 17.67% in 2021 before declining to 10.97% in 2022. From 2023 onwards, reported ROE turned negative, indicating losses relative to equity, and worsened significantly, reaching -209.52% by 2025. Adjusted ROE also showed positive returns through 2022 but was consistently higher than reported ROE during this period, indicating that adjustments enhanced profitability metrics. However, starting in 2023, adjusted ROE became severely negative, reflecting substantial impairments or write-downs impacting profitability and shareholder returns, though the negative values were less extreme than the reported figures.

Overall Insights

The data reveals a company that experienced solid profitability and equity growth through 2021, followed by a sharp reversal starting in 2023. The substantial negative net income and declining equity from 2023 onwards suggest significant financial challenges, possibly linked to asset impairments or other extraordinary charges affecting goodwill. The divergence between reported and adjusted figures indicates that goodwill adjustments significantly impact the financial presentation, particularly in recent years. Both profitability and equity metrics deteriorated sharply, leading to deeply negative returns on equity by 2025, which raises concerns about financial stability and operational performance during that period.

The analysis of the financial data over the reported periods reveals several notable trends. Reported net income increased significantly from 2020 to 2021, peaking at 588,886 thousand US dollars, before declining in 2022 and turning into a substantial loss starting in 2023. The losses deepen sharply in 2024 and 2025. Adjusted net income mirrors this pattern but shows less severe losses in the later years, indicating that adjustments, likely related to goodwill or other considerations, mitigate some of the negative impact.

Total assets under reported values increased consistently from 2020 to 2023, reaching a high of approximately 15.86 billion US dollars, then contracted sharply in 2024 and further in 2025. Adjusted total assets follow a similar upward trend initially, peaking in 2023 and 2024 but at lower absolute values than reported assets, then appear relatively stable from 2024 to 2025, indicating that adjustments affect the asset base significantly by reducing its size in the later years.

Return on assets (ROA), both reported and adjusted, reflect the trends in profitability. Reported ROA increased from 8.17% in 2020 to a peak of 9.77% in 2021, then declined gradually in 2022 before turning negative in 2023, continuing to deteriorate sharply through 2024 and 2025. Adjusted ROA followed a similar trend but shows milder negative returns in the last two years, again suggesting that adjustments somewhat soften the extent of losses reflected by reported figures.

Profitability Trends

The company experienced strong profitability growth up to 2021, followed by a sharp decline leading to significant losses in subsequent years. Adjusted figures suggest some mitigating factors but do not fully offset the downward trend.

Asset Base Changes

Reported assets expanded significantly until 2023, followed by a sizeable reduction. Adjusted assets also grew but to a lesser degree and remained more stable after the peak, indicating that goodwill or other adjustments considerably affect asset valuation.

Return on Assets

ROA trends align with profitability, showing healthy returns early on, then turning negative with increasing severity. Adjusted ROA indicates less extreme declines, reflecting the impact of adjustments on overall asset efficiency analysis.