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

The financial data for property, plant, and equipment over the analyzed periods reveals several key trends reflecting significant asset growth and depreciation patterns.

Computer Equipment

There is a consistent and substantial increase in the value of computer equipment from 127,897 thousand USD in 2020 to 365,000 thousand USD in 2025. This steady rise indicates ongoing investment or acquisition in technology infrastructure.

Leasehold Improvements

Leasehold improvements follow a similar upward trend, growing from 113,057 thousand USD in 2020 to 313,200 thousand USD in 2025. The substantial increases starting in 2022 suggest significant enhancements or expansions in leased properties.

Computer Software

The value of computer software shows moderate growth from 60,507 thousand USD in 2020 to a peak of 102,000 thousand USD in 2023, followed by a temporary decline to 89,000 thousand USD in 2024, and then a sharp increase to 147,500 thousand USD in 2025. These fluctuations may indicate variations in capitalization policies or acquisition cycles for software assets.

Buildings

Buildings exhibit a developing pattern starting with negligible values, increasing to 65,100 thousand USD by 2025. This suggests initial asset acquisition or capitalized construction projects beginning in 2021.

Furniture and Fixtures

Furniture and fixtures also show a steady increase from 16,520 thousand USD in 2020 to 43,400 thousand USD in 2025, reflecting occasional reinvestment in office or operational environments.

Office Equipment

Office equipment grows moderately from 12,109 thousand USD in 2020 to a plateau around 20,700 thousand USD in 2025. The growth reflects a consistent but moderate level of investment in supporting equipment.

Fixed Assets, Gross

The total gross fixed assets illustrate a robust expansion from 330,090 thousand USD in 2020 to 954,900 thousand USD in 2025, more than doubling over the evaluated period. This correlates closely with the growth observed across individual asset categories, highlighting an overall asset base expansion.

Accumulated Depreciation

Accumulated depreciation increases steadily and significantly, moving from -198,202 thousand USD in 2020 to -511,100 thousand USD in 2025. This reflects increased wear and usage of assets alongside aging fixed assets, aligning with the concurrent asset growth.

Fixed Assets, Net

Net fixed assets demonstrate a strong upward trend, increasing from 131,888 thousand USD in 2020 to 443,800 thousand USD in 2025. This indicates that additions to fixed assets have outpaced depreciation expenses, resulting in a growing net asset base.

Overall, the data indicates a strategic expansion in fixed assets with considerable capital investments across multiple categories, notably computer equipment, leasehold improvements, and software. Despite increasing accumulated depreciation, the net asset value continues to rise, signaling that asset additions and improvements are significant and contribute positively to the company’s capital structure.

Average Age Ratio

The average age ratio shows a general decrease from 60.04% in 2020 to a low of 43.88% in 2023, indicating that the assets were relatively younger during this period. However, it then increased again to 53.52% by 2025, suggesting some aging of the asset base in the most recent years.

Estimated Total Useful Life

The estimated total useful life of the assets exhibits variability, starting at 7 years in 2020 and 2021, increasing to 9 years in 2022, before decreasing to 6 years by 2024 and remaining constant in 2025. This suggests adjustments in asset lifespan assessments, which may reflect changes in asset types or evaluation standards.

Estimated Age, Time Elapsed Since Purchase

The estimated age of assets remains consistent at 4 years from 2020 to 2023, then decreases to 3 years in 2024 and 2025. This reduction indicates that newer assets were acquired or the asset base was refreshed starting in 2024.

Estimated Remaining Life

Estimated remaining life fluctuates, initially at 3 years in 2020 and 2021, increasing to 5 years in 2023, before declining again to 3 years in 2024 and stabilizing in 2025. This reflects changes in asset longevity expectations, possibly affected by asset retirements or acquisitions.

Accumulated Depreciation

The accumulated depreciation increased steadily from $198,202 thousand in 2020 to $511,100 thousand in 2025. This reflects a consistent depreciation expense over the years, with notable acceleration in the most recent years, particularly between 2024 and 2025. This upward trend indicates ongoing wear and usage of the company's property, plant, and equipment assets.

Fixed Assets, Gross

Gross fixed assets showed a strong growth trend over the six-year period. Beginning at $330,090 thousand in 2020, the value nearly tripled to $954,900 thousand by 2025. The most significant expansions occurred between the years 2021 and 2023, suggesting substantial capital investments in property, plant, and equipment during this period. Growth abated slightly but remained positive through 2024 and 2025.

Average Age Ratio

The average age ratio of fixed assets decreased from 60.04% in 2020 to 43.88% in 2023, indicating a renewal or addition of newer assets relative to older ones during these years. However, after 2023, the ratio increased to 53.52% by 2025, suggesting that the asset base aged somewhat as capital expenditures potentially slowed or assets began accumulating more depreciation relative to additions. Overall, the pattern reflects an initial modernization followed by gradual aging of the asset mix.

Overall Insights

The data reveals that the company has engaged in significant investment activities, expanding its fixed asset base substantially. The increasing accumulated depreciation corresponds to the growing asset base and consistent usage over time. The initial decline and subsequent rise in the average age ratio suggest a cycle of asset renewal followed by aging. These trends collectively indicate a dynamic management of property, plant, and equipment, balancing expansion with ongoing asset consumption and replacement considerations.

Fixed Assets, Gross

The gross value of fixed assets has shown a consistent upward trend over the examined period. Starting at $330,090 thousand as of March 31, 2020, it increased steadily each year, reaching $954,900 thousand by March 31, 2025. This reflects a strong expansion in the company's capital investment in property, plant, and equipment.

Depreciation Expense Related to Fixed Assets

Depreciation expense has generally increased in line with the growth of fixed assets, moving from $47,628 thousand in 2020 to $153,900 thousand in 2025. Notably, there was a more significant acceleration in depreciation between 2021 and 2023, indicating increased asset base utilization or changes in depreciation policies aligned with asset acquisition or valuation.

Estimated Total Useful Life

The estimated useful life of the fixed assets has varied over the years. It remained steady at 7 years for 2020 and 2021, then increased to 9 years in 2022, before decreasing to 8 years in 2023 and further to 6 years in 2024 and 2025. This shortening of useful life estimates in later years could signify accelerated asset wear or adjustments to depreciation schedules, which may contribute to the rising depreciation expenses observed.

Summary

Overall, the data indicates substantial growth in fixed assets, accompanied by increasing depreciation expenses that reflect both asset additions and changes in estimated useful lives. The decreasing trend in estimated useful life in recent years suggests a strategic adjustment in asset management or accounting policies, influencing the depreciation charges and potentially impacting future earnings and asset book values.

Accumulated Depreciation

There is a consistent upward trend in accumulated depreciation over the analyzed periods. Starting from 198,202 thousand US dollars in 2020, it increased annually, reaching 511,100 thousand US dollars by 2025. This indicates ongoing asset usage and aging, reflecting the continuous allocation of the cost of property, plant, and equipment over their useful life.

Depreciation Expense Related to Fixed Assets

The depreciation expense shows a significant upward trajectory as well. It rose from 47,628 thousand US dollars in 2020 to 153,900 thousand US dollars in 2025. The most notable increases occurred between 2022 and 2023 (from 59,050 to 88,800 thousand US dollars) and between 2023 and 2024 (from 88,800 to 135,500 thousand US dollars), suggesting either higher rates of asset consumption or additions of assets with higher depreciation charges.

Time Elapsed Since Purchase

The time elapsed since the purchase of the assets remained steady at 4 years from 2020 through 2023 but decreased to 3 years in 2024 and 2025. This decrease implies the acquisition of newer assets during the latter periods, which could be contributing to the rising depreciation expenses despite the high accumulated depreciation balances.

Summary Insights

Overall, the data demonstrates ongoing investment in property, plant, and equipment with assets aging and higher depreciation charges recognized annually. The reduction in average asset age in the later years suggests recent acquisitions, potentially reflecting an expansion or modernization phase. The rapid increase in depreciation expense relative to accumulated depreciation indicates a shift in asset composition or depreciation methods that results in higher annual charges.

Fixed Assets, Net

The net value of fixed assets has shown a significant upward trend over the analyzed period. Starting at 131,888 thousand US dollars as of March 31, 2020, the figure increased moderately to 149,364 thousand US dollars in 2021, followed by a substantial rise to 242,039 thousand US dollars in 2022. This upward momentum accelerated further, reaching 402,800 thousand US dollars in 2023 and continuing to grow to 411,100 and 443,800 thousand US dollars in 2024 and 2025, respectively. The consistent increase indicates ongoing investment or capital improvements in property, plant, and equipment.

Depreciation Expense Related to Fixed Assets

Depreciation expense corresponding to fixed assets also displayed a rising pattern over the years reviewed. Beginning at 47,628 thousand US dollars in 2020, the expense increased steadily each year to 54,835 thousand in 2021 and 59,050 thousand in 2022. More pronounced increases occurred in subsequent years, with depreciation expenses reaching 88,800 thousand in 2023, jumping significantly to 135,500 thousand in 2024, and further increasing to 153,900 thousand in 2025. This trend suggests either higher fixed asset bases subject to depreciation or shifting asset lifecycles impacting depreciation charges.

Estimated Remaining Life

The estimated remaining life of the fixed assets, expressed in years, has fluctuated during the period. It remained stable at 3 years for 2020 and 2021, then increased to 4 years in 2022 and 5 years in 2023, indicating possible asset renewals or extensions of useful lives. However, it reverted to 3 years in both 2024 and 2025, which may reflect changes in asset composition, impairment considerations, or revisions in useful life estimates. These shifts are relevant for forecasting depreciation and asset replacement timing.