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

Current Income Taxes

Over the analyzed periods, current income taxes exhibit a fluctuating pattern with an overall increasing trend from 40,197 thousand USD in 2020 to a peak of 171,500 thousand USD in 2023. After this peak, the amount declines to 126,700 thousand USD by 2025. This suggests variability in taxable income or changes in tax obligations, with a notable rise in the fiscal years 2022 and 2023 followed by a reduction thereafter.

Deferred Income Taxes

The deferred income taxes show significant volatility over the years. Starting at 13,783 thousand USD in 2020, it rises sharply to 37,150 thousand USD in 2021 but drops substantially to 11,898 thousand USD in 2022. A dramatic shift occurs in 2023, where deferred taxes turn negative to -384,900 thousand USD, indicating a considerable deferred tax asset or reversal of previous liabilities. This negative trend continues through 2025, with values of -101,500 thousand USD and -139,100 thousand USD respectively, reflecting ongoing deferred tax benefits or adjustments affecting the tax position.

Provision for (Benefit from) Income Taxes

This item reflects the sum of current and deferred income tax expenses or benefits. Initially, there is an increasing provision reaching 88,930 thousand USD in 2021. The figure then decreases to 47,376 thousand USD in 2022 before showing a significant benefit (negative provision) of -213,400 thousand USD in 2023. This benefit substantially reduces taxable expense, likely driven by the large deferred tax asset recognized in the same period. In 2024 and 2025, the provision returns to positive territory but at lower levels compared to earlier years, indicating more moderate tax expenses or reduced benefits.

Summary

The financial data reveals considerable fluctuations in both current and deferred income tax components, impacting the overall provision for income taxes. A notable development is the large deferred tax asset recognized starting in 2023, significantly influencing the total tax provision. The trends indicate periods of varying tax obligations, possibly due to changes in earnings, tax strategies, or adjustments in deferred tax assets and liabilities. This dynamic pattern suggests active tax management and the influence of underlying financial or operational changes during the analyzed timeframe.

The analysis of the annual financial data reveals several notable trends and fluctuations in the effective tax components over the examined period.

U.S. statutory federal income tax rate

This rate remained constant at 21% throughout all periods, indicating stable federal tax legislation impacting the company.

State and local taxes, net of U.S. federal benefit

There is a general decline in this component from 2.1% in 2020 to 0.4% in 2025, with some fluctuations, indicating a decreasing burden or better tax planning concerning state and local taxation.

Foreign tax rate differential

This factor shows notable volatility, starting positively at 1% in 2020 but dipping into negative territory through most of the subsequent years, suggesting changes in the relative foreign tax environments and their differential impact.

Foreign earnings

These consistently contribute negatively to the tax rate, though the impact lessened between 2021 and 2025. This suggests either reduced foreign earnings or improving tax efficiency in foreign jurisdictions.

Tax credits

The pattern fluctuates widely, from negative contributions in the early years (such as -8.3% in 2020) to positive contributions in 2023 (5.7%) and requirements tapering off thereafter. This implies the company’s utilization or availability of tax credits varied significantly across the years.

Excess tax benefits from stock-based compensation

This component reflects a decreasing negative impact over time, moving from -1.8% in 2020 to a small positive effect by 2025, possibly indicating improved tax benefits related to equity compensation.

Earn-out adjustments

Sporadic values appear with a positive 2.2% impact in 2021, then near neutral or minimal impact afterwards, displaying irregular influence from acquisition-related adjustments.

Valuation allowances (domestic and foreign)

Domestic valuation allowances show a significant negative trend starting in 2022 and reaching a trough in 2024 (-9.1%), before recovering in 2025. Foreign valuation allowances exhibit minor fluctuations with an overall decreasing trend from positive 7.3% in 2020 to negative values thereafter. These movements indicate substantial reconsiderations of deferred tax assets’ realizability, especially domestically.

Nondeductible compensation

Values reveal minor impacts with a slight negative trend, indicating relatively stable but marginally decreasing nondeductible compensation expenses affecting tax rates.

Global intangible low-taxed income (GILTI)

After a small positive influence in 2021, GILTI becomes increasingly negative, especially notable in 2023 (-3.1%), representing heightened tax costs associated with intangible income in low-tax jurisdictions.

Foreign-derived intangible income

This metric shows variable effects, initially negative but shifting to positive contributions by 2023, followed by slight declining positive impacts, reflecting changes in tax treatment or income allocation across foreign jurisdictions.

Change in reserves

The reserves' impact diminishes from -2% in 2020 to near neutral in subsequent years, indicating reduced adjustments for uncertain tax positions or previously recognized tax uncertainties.

Goodwill impairment

Only appearing in the last two years with substantial negative rates (-12.8% and -16%), this factor heavily influences the tax rate, likely reflecting impairment charges affecting deferred tax calculations or benefits.

Other

Miscellaneous items show minor effects, generally close to zero or marginally negative, indicating small residual impacts on the overall tax rate.

Effective tax rate

The effective tax rate demonstrates considerable variability, beginning at 11.8% in 2020, peaking at 15.9% in 2023, and then falling sharply to below zero in 2024 (-1.1%) and near zero in 2025 (0.3%). This volatility appears driven by the interplay of goodwill impairments, tax credits, valuation allowances, and foreign tax dynamics, highlighting periods of significant tax rate compression and even potential tax benefits exceeding tax liabilities.

The financial data reveals several notable trends and shifts over the analyzed periods.

Capitalized Development Costs, Software and Depreciation

There is a significant increase in capitalized development costs starting from March 31, 2024, reaching 440,600 thousand US dollars by March 31, 2025, indicating a growing investment in software development and related assets in the later years.

Tax Credit Carryforward

This item shows continuous increase throughout the period, rising from 45,746 thousand US dollars in 2020 to 232,500 thousand US dollars in 2025, suggesting accumulating tax credits available for future use.

Equity-Based Compensation

Equity-based compensation steadily increases from 66,253 thousand US dollars in 2020 to 158,300 thousand US dollars in 2025, reflecting potentially higher employee stock-based incentives over time.

Tax Basis Step Up Related to TRAF

The tax basis step up shows a gradual increase from 45,266 thousand US dollars in 2020 to 131,100 thousand US dollars in 2024 and remains steady in 2025, indicating adjustments in tax basis potentially linked to tax receivable agreements.

Net Operating Loss Carryforward

There is a marked rise starting in 2023, reaching 104,100 thousand US dollars in 2025 from a relatively low base, indicating accumulation of net operating losses that may offset future taxable income.

Operating Lease Liabilities

Operating lease liabilities grow consistently from 39,512 thousand US dollars in 2020 to a peak of 101,900 thousand US dollars in 2024, followed by a slight decrease in 2025, suggesting increased lease obligations with some moderation toward the end.

Accrued Compensation Expense

Accrued compensation expenses decline from a high of 132,794 thousand US dollars in 2021 to 72,600 thousand US dollars in 2024, with a minor rise to 79,700 thousand US dollars in 2025, which may reflect changes in compensation accrual policies or payout patterns.

Disallowed Interest

This is reported only in 2025, amounting to 20,800 thousand US dollars, indicating newly recognized disallowed interest expense or adjustment in that year.

Deferred Revenue

Deferred revenue appears sporadically with an increase in 2022 to 13,046 thousand US dollars, absence in some years, and a small amount in 2025, reflecting variability in advance payments or contract liabilities.

Business Reorganization

Amounts are relatively small and variable, with values oscillating and showing no clear trend, suggesting occasional restructuring-related costs.

Other Items

The 'Other' category shows fluctuations, peaking notably at 26,000 thousand US dollars in 2023 and dropping sharply in 2024, suggesting irregular or non-recurring items impacting the financials.

Deferred Tax Assets and Valuation Allowance

Deferred tax assets increase substantially throughout the period, nearly quadrupling from 336,267 thousand US dollars in 2020 to over 1,281,900 thousand US dollars in 2025. However, the valuation allowance also increases dramatically in the negative direction, reaching -1,127,000 thousand US dollars in 2025. Consequently, net deferred tax assets display a peak in 2023 at 431,500 thousand US dollars but then decline sharply thereafter, suggesting that while deferred tax assets grow, a large portion is offset by valuation allowances, possibly reflecting uncertainty regarding realizability.

Intangible Amortization

Intangible amortization worsens significantly in 2023, reaching a negative 841,000 thousand US dollars before improving somewhat in subsequent years, indicating high amortization expenses that impact income.

Right-of-Use Assets

These assets show a gradual decline in net value over time, indicating ongoing amortization or impairment of leased asset rights.

Deferred Tax Liabilities

Deferred tax liabilities increase notably through 2023, peaking at -920,700 thousand US dollars, then decrease over the next two years. The large movements in deferred tax liabilities alongside deferred tax assets highlight substantial tax timing differences in accounting.

Net Deferred Tax Asset (Liability)

This value turns negative in 2023, remaining so through 2025, indicating that the liabilities exceed assets in deferred taxes during the last periods analyzed, which could affect future tax payments and financial position.

Deferred Tax Assets

The deferred tax assets have shown a consistent decline over the reported periods. Starting from US$116,676 thousand as of March 31, 2020, there is a clear downward trend with values reducing to US$90,206 thousand in 2021, US$73,801 thousand in 2022, and further to US$44,800 thousand by March 31, 2023. The decline steepens from 2023 onwards, with the deferred tax assets dropping sharply to US$1,900 thousand in 2024 and reaching a minimal US$100 thousand by March 31, 2025. This indicates a significant reduction of deferred tax assets over the five-year span, pointing towards either the utilization of these assets or changes in tax planning strategies.

Deferred Tax Liabilities

In contrast to deferred tax assets, deferred tax liabilities initially decrease from US$5,130 thousand in 2020 to US$3,457 thousand in 2021. However, from 2022, there is a dramatic increase with liabilities rising to US$21,788 thousand, then surging to US$534,000 thousand by March 31, 2023. Although there is a decline in the following years, the amounts remain substantially elevated, with liabilities reported at US$340,900 thousand in 2024 and US$259,600 thousand in 2025. The sharp rise followed by a gradual decrease suggests significant changes in the company's deferred tax position, possibly due to adjustments in accounting estimates, changes in tax regulations, or recognition of deferred tax liabilities related to new taxable temporary differences.

Overall Analysis

The data presents a contrasting dynamic between deferred tax assets and liabilities. While deferred tax assets steadily diminish to a near negligible level, deferred tax liabilities experience extreme growth, peaking in 2023 and then moderating slightly but remaining high through 2025. This divergence indicates a substantial net deferred tax liability emerging over the observed period. The shift could reflect evolving tax positions linked to changes in the company's asset base, tax planning measures, or regulatory impacts. The pronounced increase in liabilities relative to assets suggests the company may anticipate future taxable benefits and obligations that warrant close monitoring for financial and tax strategy implications.

Total Assets

The reported total assets displayed a consistent upward trend from March 31, 2020, through March 31, 2022, increasing from approximately $4.95 billion to $6.55 billion. There was a significant surge in assets by March 31, 2023, reaching approximately $15.86 billion, followed by a decline in the next two periods to about $12.22 billion and $9.18 billion, respectively. The adjusted total assets follow a very similar pattern, with minor differences in values, indicating adjustments related to reported and deferred income taxes had a limited impact on overall asset valuation.

Total Liabilities

Reported total liabilities rose steadily from about $2.41 billion in March 2020 to approximately $2.74 billion by March 2022. Thereafter, liabilities experienced a marked increase to nearly $6.82 billion by March 2023. In the subsequent years, liabilities remained elevated, fluctuating around $6.55 billion and $7.04 billion. Adjusted liabilities also increased in a similar pattern but are slightly lower than the reported liabilities in all years, suggesting that deferred income tax adjustments slightly reduce the recognized liabilities but do not materially alter the overall liability structure.

Stockholders’ Equity

Reported stockholders’ equity rose from roughly $2.54 billion in March 2020 to about $3.81 billion in March 2022, reflecting a positive equity growth phase. However, there was a significant increase by March 2023 to approximately $9.04 billion, which was then followed by sharp declines to $5.67 billion and $2.14 billion in the subsequent two years. The adjusted equity follows a similar trajectory, but values are slightly lower or higher at different points, with a notable higher adjusted equity figure in March 2023. This suggests that accounting adjustments related to income taxes influence equity but the general trend of rising and then sharply falling equity remains evident.

Net Income (Loss)

Reported net income exhibited growth in the first three years, increasing from $404 million in March 2020 to $588.9 million in March 2021 before falling to $418 million in March 2022. From March 2023 onward, net income turned negative, with substantial losses reported: approximately -$1.12 billion in March 2023, deepening to -$3.74 billion in March 2024 and -$4.48 billion in March 2025. Adjusted net income follows this deteriorating trend as well, with slightly larger losses reported than the reported numbers, implying deferred tax adjustments exacerbate the reported income reductions.

Summary and Insights

The data reveals a period of growth in assets, liabilities, equity, and net income from 2020 through 2022, followed by a dramatic increase in assets and equity in 2023, likely due to a significant event or transaction. However, following 2023, there is a notable reversal: assets and equity decline sharply while liabilities remain high, and the company records substantial losses over the last two years. Adjustments for reported and deferred income taxes slightly modify the magnitude of assets, liabilities, equity, and net income figures but do not change overall trends.

The analysis of the financial performance indicators over the review periods reveals a significant shift in profitability and efficiency metrics.

Net Profit Margin

Both reported and adjusted net profit margins exhibit a positive trend from March 2020 through March 2021, peaking at approximately 17.46% (reported) and 18.56% (adjusted). From March 2022 onwards, the margins decline sharply, turning negative by March 2023 and further deteriorating through to March 2025, reaching lows of -79.5% (reported) and -81.97% (adjusted). This downward trend indicates escalating losses and declining profitability in the most recent years.

Total Asset Turnover

The reported and adjusted total asset turnover ratios start at 0.62 and 0.64 respectively in 2020, followed by a gradual decline to 0.34 by March 2023. Subsequently, a recovery is observed with the ratio increasing to 0.61 by March 2025. This pattern suggests operational efficiency in asset utilization weakens initially but shows signs of improvement towards the end of the period.

Financial Leverage

Financial leverage ratios remain relatively stable and modest between 1.72 and 1.99 from 2020 to 2023. However, a significant increase occurs in 2024 and 2025, with reported leverage rising to 4.29 and adjusted leverage to 3.83 by March 2025. This indicates a substantially greater reliance on debt financing or other liabilities, amplifying financial risk in recent periods.

Return on Equity (ROE)

Both reported and adjusted ROE reflect a similar trajectory to net profit margins. Positive returns are observed through March 2021, followed by a decline to negative figures from March 2023 onwards. The adjusted ROE decreases from 19.29% in 2021 to -192.64% in 2025, indicative of significantly eroded shareholder value and heavy losses relative to equity.

Return on Assets (ROA)

The ROA figures, reported and adjusted, also mirror the declines seen in profitability. The values drop from healthy positive levels around 8-10% in 2020-2021 to deeply negative levels by 2025, reaching approximately -50%. The negative ROA reflects ineffective utilization of assets to generate profits, further confirming the deteriorating performance status.

Overall, the data outlines a stark deterioration in profitability with worsening margins, returns, and escalating leverage over time. The initial years demonstrate solid operational and financial stability, which decline sharply from 2022 onwards. Although there is a modest rebound in asset turnover toward the latest period, the overwhelming trend is one of increasing losses and financial risk, suggesting challenges in both operational efficiency and financial management during the most recent years.

Net Income and Adjusted Net Income Trends

Reported net income demonstrated growth from 404.5 million in the 2020 fiscal year to a peak of approximately 588.9 million in 2021. This upward trend reversed in 2022 with a decline to 418 million, followed by a significant downturn in 2023, registering a negative net income of about -1.12 billion. This negative trajectory intensified substantially through 2024 and 2025, culminating in reported losses of -3.74 billion and -4.48 billion, respectively.

Adjusted net income followed a similar pattern, starting slightly higher than reported net income at 418.2 million in 2020 and rising to a peak of 626 million in 2021. Subsequently, adjusted figures dropped to 429.9 million in 2022 and then shifted dramatically into negative territory from 2023 onward, reaching losses of -1.51 billion, -3.85 billion, and -4.62 billion in the following three years.

Profit Margin Dynamics

Reported net profit margin improved from 13.09% in 2020 to a high of 17.46% in 2021. However, this margin declined to 11.93% in 2022 before deteriorating sharply into negative territory in subsequent years, recording -21.02% in 2023 and plummeting further to -69.99% and -79.5% in 2024 and 2025, respectively.

The adjusted net profit margin followed a comparable course, improving from 13.54% in 2020 to 18.56% in 2021, then decreasing to 12.27% in 2022. This was succeeded by a steep decline into significantly negative figures in 2023 through 2025, with margins of -28.22%, -71.89%, and -81.97%, respectively.

Overall Insights

The data reveals initial financial strength and profitability with upward trends in both net income and profit margins through 2021. However, from 2022 onwards, there is a clear and substantial decline, with the company transitioning from profit to sustained and increasing losses. This is reflected consistently across the reported and adjusted metrics, indicating that adjustments have not mitigated the overall adverse financial performance.

The deterioration in profitability margins—shifting from positive double digits to severe negative percentages—highlights substantial financial challenges during the latter three years. These trends warrant further investigation into underlying operational, market, or accounting factors contributing to this downturn.

The analysis of the adjusted and reported financial data over the periods from March 31, 2020, to March 31, 2025, reveals several notable trends in asset valuation and efficiency.

Total Assets

Both reported and adjusted total assets show an overall upward trend from 2020 through 2023, peaking in the fiscal year ending March 31, 2023, at approximately US$15.86 billion (reported) and US$15.82 billion (adjusted). After this peak, there is a marked decline in both reported and adjusted total assets in the subsequent years, falling to approximately US$9.18 billion by March 31, 2025. The close alignment between reported and adjusted asset values indicates minimal impact from the income tax related adjustments on the total asset figures.

Total Asset Turnover Ratios

Total asset turnover, both reported and adjusted, demonstrates a gradual decrease from around 0.62–0.64 in 2020 to a low of 0.34 in 2023. This decline indicates a reduction in asset utilization efficiency during this period, meaning the company generated less revenue per unit of asset. However, starting in 2024, the ratio begins to recover, rising first to 0.44 and then significantly improving to 0.61 by 2025, suggesting a restoration of efficiency in asset usage.

Insights on Adjustments

The adjusted figures closely track the reported ones for both total assets and asset turnover ratios, with differences being marginal. This suggests that the adjustments for deferred and reported income tax do not substantially alter the perception of asset size or operational efficiency over time. Consequently, trends observed in reported figures are reliable indicators of the company's underlying financial dynamics.

Summary of Trends

There is a clear pattern of rapid asset growth until 2023, followed by a significant contraction through 2025. Correspondingly, asset turnover efficiency declined sharply leading to 2023 and then recovered notably afterward. The synchronization of reported and adjusted data implies tax-related adjustments are not materially distorting asset-based metrics, thereby reinforcing the validity of observed trends in asset scale and efficiency.

The data reveals significant fluctuations in both the asset base and equity levels over the observed periods, accompanied by corresponding changes in financial leverage.

Total Assets

Both reported and adjusted total assets show a consistent upward trend from 2020 through 2023, peaking sharply in the fiscal year ending March 31, 2023. Reported total assets increased from approximately $4.95 billion in 2020 to about $15.86 billion in 2023, while adjusted total assets closely mirror these figures. However, following 2023, there is a marked decline in total assets, dropping to around $12.22 billion in 2024 and further down to approximately $9.18 billion by 2025.

Stockholders’ Equity

Stockholders’ equity, both reported and adjusted, follows a similar upward trend through 2023, rising from roughly $2.54 billion reported in 2020 to a peak of about $9.04 billion in 2023 (reported), and $9.53 billion adjusted for the same period. Thereafter, equity decreases substantially with reported equity falling to approximately $5.67 billion in 2024 and dropping sharply to $2.14 billion in 2025. Adjusted equity exhibits a corresponding decrease, though slightly higher in absolute terms than reported figures in these later years.

Financial Leverage

Financial leverage ratios have generally been decreasing from 2020 to 2022, starting at 1.95 (reported) and dropping to 1.72 in 2022, indicating a reduction in the ratio of total assets to equity and thus a relatively stronger equity position. Adjusted leverage matches this declining trend. However, in 2023 and subsequent years, leverage ratios increase sharply, with reported leverage rising to 1.75 in 2023, then escalating to 2.16 in 2024, and further to an elevated level of 4.29 in 2025. Adjusted leverage follows a similar trajectory but remains slightly lower than the reported figures, ending at 3.83 in 2025.

Overall, the data indicates the company underwent a phase of growth in asset and equity values through 2023, followed by significant contractions in both during 2024 and 2025. The increasing leverage in the latter years suggests a rising reliance on debt or liabilities relative to equity, indicating a potentially higher financial risk profile. The close alignment between reported and adjusted figures across all metrics suggests that adjustments for deferred income tax and similar items have a moderate but consistent impact on the financial presentation.

The data exhibits notable fluctuations across all reported and adjusted financial metrics over the presented periods.

Net Income (Loss)

Reported net income showed a positive trend from 2020 through 2022, increasing from 404,459 to 588,886 thousand US dollars in 2021, followed by a decline to 418,022 thousand US dollars in 2022. However, from 2023 onwards, the company experienced significant losses, with reported net income dropping sharply to -1,124,700 thousand US dollars in 2023, further declining to -3,744,200 in 2024 and -4,478,900 in 2025.

Adjusted net income follows a similar trajectory, with higher values than the reported figures, starting at 418,242 thousand US dollars in 2020, peaking at 626,036 thousand US dollars in 2021, then declining to 429,920 thousand US dollars in 2022. Subsequent periods also show substantial losses, reaching -1,509,600 in 2023, -3,845,700 in 2024, and -4,618,000 in 2025.

Stockholders’ Equity

Reported stockholders’ equity increased steadily from 2,539,244 thousand US dollars in 2020 to 3,819,659 thousand US dollars in 2022. A significant surge occurred in 2023, where equity almost doubled to 9,042,500 thousand US dollars. However, this was followed by a sharp decline down to 5,667,900 in 2024 and a further drop to 2,137,700 by 2025.

Adjusted stockholders’ equity exhibits a similar pattern, moving from 2,427,698 thousand US dollars in 2020 to 3,757,646 thousand US dollars in 2022, then sharply increasing to 9,531,700 thousand US dollars in 2023. Afterwards, it decreases to 6,006,900 in 2024 and declines further to 2,397,200 in 2025.

Return on Equity (ROE)

Reported ROE reflected positive performance in 2020 and 2021, at 15.93% and 17.67% respectively, but declined substantially to 10.97% in 2022. A negative trend emerges in 2023 with ROE falling to -12.44%, which deteriorates markedly in following years, reaching -66.06% in 2024 and plummeting further to -209.52% in 2025, indicating significant losses relative to equity.

Adjusted ROE follows the same pattern but with higher positive values in earlier years: 17.23% in 2020, 19.29% in 2021, dropping to 11.44% in 2022. It turns negative in 2023 at -15.84% and worsens similarly to the reported figure, at -64.02% in 2024 and -192.64% in 2025.

Overall, the data reveals a company that displayed strong profitability and growing equity through 2021 and early 2022, followed by a severe decline characterized by sustained losses and deteriorating equity positions in the subsequent periods. The ROE metrics confirm this negative shift, transitioning from healthy positive returns to deeply negative values, suggesting impairments in earning capacity and potentially increasing financial risk. The sharp rise in equity in 2023 followed by steep declines suggests exceptional transactions or accounting adjustments affecting equity, which may warrant further investigation. The consistency between reported and adjusted figures increases confidence in these trend observations despite the broad losses shown.

Net Income Trends

Reported net income showed positive values from 2020 through 2022, peaking at 588,886 thousand USD in 2021 before decreasing sharply to a loss of 1,124,700 thousand USD in 2023. The negative trajectory intensified over the following years, reaching a loss of 4,478,900 thousand USD by 2025. Adjusted net income followed a similar pattern but was slightly higher in positive years and showed larger losses in the negative years, indicating that adjustments amplify both gains and losses.

Asset Base Evolution

Reported total assets increased steadily from 4,948,832 thousand USD in 2020 to a peak of 15,862,100 thousand USD in 2023. After 2023, total assets declined markedly, falling to 9,180,700 thousand USD by 2025. Adjusted total assets mirrored this pattern closely, suggesting that adjustments had limited impact on total asset values but the overall asset base experienced significant volatility with a sharp rise followed by a notable contraction.

Return on Assets (ROA) Analysis

ROA based on reported data improved from 8.17% in 2020 to 9.77% in 2021, then decreased substantially to 6.39% in 2022 before turning negative at -7.09% in 2023. The downward trend in profitability deepened in 2024 and 2025, with ROA falling dramatically to -30.65% and -48.79%, respectively. Adjusted ROA followed a similar pattern but was consistently more negative during the downturn, reaching -50.3% in 2025. This suggests that after adjustments, asset utilization efficiency continued to deteriorate even more significantly.

Overall Observations

The data reveals a period of growth and profitability in the early years followed by a severe decline in financial performance and asset base after 2022. The adjustments applied to income and assets tend to increase the volatility of reported figures. The company's negative net income and diminishing ROA in recent years indicate escalating losses and inefficient use of assets. The sharp rise and subsequent decline in total assets might reflect strategic changes or write-downs impacting the firm's balance sheet.