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

The data reflects noticeable shifts in key financial metrics over the analysis periods, with some indicators showing improvement while others depict significant deterioration.

Total Asset Turnover

The reported total asset turnover ratio demonstrates a declining trend from 0.62 in 2020 to a low of 0.34 in 2023, followed by recovery to 0.61 by 2025. The adjusted total asset turnover exhibits a similar pattern, indicating a temporary reduction in asset utilization efficiency around 2023 and subsequent improvement towards the latest period.

Current Ratio

The reported current ratio shows stability above 1.7 during 2020-2022, then a significant decline to 0.65 in 2023, partially recovering to 0.78 by 2025 but remaining below earlier levels. The adjusted current ratio mirrors this trend with higher initial values (above 2.7), a sharp drop to 0.91 in 2023, and partial recovery to 1.11 by 2025, suggesting decreased short-term liquidity in recent years.

Debt to Equity and Debt to Capital

Debt-related measures are only available from 2022 onward, revealing increasing leverage. The reported debt to equity ratio rises from 0.34 in 2022 to 1.71 in 2025, while the adjusted metric increases from 0.33 to 1.17 in the same period. Similarly, reported debt to capital climbs from 0.25 in 2022 to 0.63 in 2025, with the adjusted ratio following the same upward trajectory. This indicates a significant increase in the company’s reliance on debt financing.

Financial Leverage

Financial leverage based on reported figures remains relatively stable around 1.7 from 2020 to 2023 but then surges sharply to 4.29 by 2025. The adjusted leverage metric shows a steady increment from 1.49 in 2020 to 2.62 in 2025. This suggests a rising use of financial leverage, potentially amplifying both risk and return volatility.

Profitability Measures

The reported net profit margin declines markedly from positive levels around 13-17% in 2020-2021 to deeply negative margins from 2023 onward, reaching -79.5% in 2025. Adjusted net profit margin follows the same deteriorating pattern, underscoring worsening profitability or possibly substantial one-time losses and write-downs. Return on equity exhibits a similar trajectory with positive returns in early years turning greatly negative by 2025, indicating erosion of shareholder value. Return on assets also declines from positive single digits to negative territory, reflecting issues in both asset utilization and profit generation efficiency.

Overall, the financial data portrays a company experiencing increased financial risk through higher leverage and debt levels, combined with deteriorating liquidity and profitability beginning around 2023. While asset turnover shows signs of recovery by 2025, the persistent negative profitability and sharply increased financial leverage highlight challenges in sustainable financial performance and capital structure management.

Net Revenue Trends

Net revenue exhibited a steady increase from 3,088,970 thousand US dollars in 2020 to 3,504,800 thousand in 2022. A significant rise occurred in 2023, with net revenue jumping to 5,349,900 thousand US dollars, which essentially doubled compared to previous years. The revenue remained stable in 2024 at approximately 5,349,600 thousand US dollars, followed by a moderate increase to 5,633,600 thousand in 2025.

Total Assets Trends

Total assets increased consistently from 4,948,832 thousand US dollars in 2020 to 6,546,219 thousand in 2022. A marked surge was observed in 2023, with total assets reaching 15,862,100 thousand US dollars. However, total assets declined noticeably in subsequent years to 12,216,900 thousand in 2024 and further to 9,180,700 thousand in 2025.

Asset Turnover Ratio Patterns

Both the reported and adjusted total asset turnover ratios decreased over the first three years, falling from 0.62 to 0.54 (reported) and 0.63 to 0.54 (adjusted) between 2020 and 2022. In 2023, there was a sharp drop to 0.34 (reported) and 0.35 (adjusted), coinciding with the substantial increase in total assets. Subsequently, these ratios improved in 2024 to 0.44 and again in 2025 to 0.61 (both reported and adjusted), approaching initial levels observed in 2020 despite the lower asset base.

Adjusted Financial Figures

Adjusted net revenue closely paralleled the net revenue trend, showing a steady increase from 3,030,733 thousand US dollars in 2020 to a peak of 5,528,000 thousand in 2023, then a slight reduction in 2024 before rebounding in 2025. Adjusted total assets mirrored the trajectory of reported total assets, including the peak in 2023 and the subsequent decline over the following years. The adjusted total asset turnover ratios followed the same pattern as their reported counterparts, indicating consistency in the adjustment methodology.

Summary Insights

The data reveals an overall expansion phase culminating in 2023, characterized by significant asset accumulation and revenue growth. The sudden increase in assets in 2023 negatively impacted asset turnover ratios, reflecting less efficient utilization of assets during this period. The subsequent decrease in asset base through 2024 and 2025 was accompanied by improved turnover ratios, suggesting a reversion towards more efficient asset use. Revenue stabilized at a higher level than pre-2023, indicating sustained higher sales despite asset reductions. The parallel patterns between reported and adjusted figures underscore the reliability of the reported financial performance indicators.

The analysis of the annual financial data reveals notable fluctuations in both asset and liability positions alongside their respective liquidity ratios over the examined periods.

Current Assets

Current assets showed an initial upward trend from approximately 3.5 billion US dollars in the fiscal year ending March 2020 to 4.2 billion in 2021. However, this was followed by a decline, reaching a low of around 2.25 billion by March 2024, with a modest rebound to about 2.82 billion projected for March 2025.

Current Liabilities

Current liabilities increased moderately from 2.04 billion in 2020 to 2.23 billion in 2021 but then exhibited high volatility, peaking sharply to 3.85 billion by March 2023. After this peak, liabilities decreased to approximately 2.41 billion in 2024 but are expected to rise again to over 3.6 billion in 2025.

Reported Current Ratio

The reported current ratio, reflecting the coverage of current liabilities by current assets, improved from 1.71 in 2020 to a high of 1.89 in 2021. This ratio slightly decreased to 1.84 in 2022 before declining sharply below 1.0 – to 0.65 in 2023 – indicating potential liquidity strain. Although there was some recovery projected by 2024 and 2025, values remained below 1.0, suggesting ongoing challenges in short-term financial strength.

Adjusted Current Assets and Liabilities

Adjusted figures, which likely refine certain components for a more accurate liquidity assessment, followed similar trends to the reported values. Adjusted current assets increased to about 4.22 billion in 2021 but decreased to approximately 2.26 billion by 2024 with a slight rise predicted for 2025.

Adjusted current liabilities remained relatively stable around 1.26 billion to 1.3 billion during 2020 and 2021, then peaked significantly to 2.77 billion in 2023. Following this peak, liabilities decreased to nearly 1.35 billion in 2024, with an expected increase to 2.53 billion in 2025.

Adjusted Current Ratio

The adjusted current ratio demonstrated a strong liquidity position above 2.7 during 2020, improving to above 3.2 in 2021, indicating robust coverage of short-term liabilities by adjusted assets. However, this ratio sharply declined to 0.91 in 2023, reflecting considerable pressure on liquidity. Partial recovery is observed for the periods ending in 2024 and 2025 with ratios of 1.68 and 1.11 respectively, yet staying below historical highs and approaching or falling below the critical threshold of 1.0.

Overall, the data indicates strong liquidity conditions during 2020 and 2021, followed by a significant deterioration around 2023 in both reported and adjusted metrics. The weakening liquidity ratios point to increased current liabilities relative to assets, potentially signaling operational or financing challenges. Although some recovery is anticipated in the subsequent years, maintaining ratios near or below 1.0 suggests the necessity for ongoing attention to liquidity management and possibly improvement in working capital structure.

Total Debt

The total debt was not reported for the periods ending March 31, 2020, through March 31, 2022. From March 31, 2023, total debt shows a gradual increase, rising from approximately 3.08 billion USD to 3.66 billion USD by March 31, 2025.

Stockholders’ Equity

Stockholders’ equity experienced a significant increase from March 31, 2020, reaching a peak at 9.04 billion USD on March 31, 2023. However, after this peak, equity declined sharply over the next two years, dropping to approximately 2.14 billion USD by March 31, 2025.

Reported Debt to Equity Ratio

This ratio data is only available for the last three periods. It showed an upward trend, starting at 0.34 at March 31, 2023, increasing to 0.54 by March 31, 2024, and then rising sharply to 1.71 by March 31, 2025, indicating increasing leverage.

Adjusted Total Debt

Adjusted total debt was stable and low from March 31, 2020, to March 31, 2022, at around 177 thousand to 250 thousand USD. It then increased sharply at March 31, 2023, reaching nearly 3.49 billion USD and continued to rise to approximately 4.11 billion USD by March 31, 2025.

Adjusted Stockholders’ Equity

Adjusted stockholders' equity grew steadily from 3.23 billion USD in March 31, 2020, to a peak of approximately 10.65 billion USD by March 31, 2023. Following this peak, equity decreased significantly to around 3.51 billion USD by March 31, 2025.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio maintained a very low and stable level of 0.05 from 2020 to 2022. Beginning in 2023, the ratio increased notably to 0.33, followed by 0.5 in 2024, and then a marked increase to 1.17 in 2025, signaling increasing debt relative to equity.

Overall, the data reveals a marked increase in indebtedness beginning in the fiscal year ending March 31, 2023, coupled with a decline in equity after that date. Both reported and adjusted debt-to-equity ratios show a trend of increasing leverage, particularly sharp in the final two years. This suggests a strategic shift towards higher financial leverage, which may entail increased financial risk. The peak in stockholders' equity in 2023 followed by its pronounced decline coincides with the sharp rise in debt levels, reinforcing this observation.

The financial data reveals notable shifts in the company's debt structure and capital base over the analyzed periods.

Total Debt

Data on total debt is available only from March 31, 2024 onwards. It shows a slight increase from 3,079,800 thousand US dollars to 3,082,900 thousand US dollars between 2024 and 2025, followed by a more substantial rise to 3,661,100 thousand US dollars in 2025, indicating a recent increase in debt levels.

Total Capital

The total capital experienced growth from 2,539,244 thousand US dollars in March 2020 to a peak of 12,122,300 thousand US dollars in March 2023. However, this was followed by a decline to 8,750,800 thousand US dollars in 2024 and further down to 5,798,800 thousand US dollars in 2025. This pattern suggests an expansion phase culminating in 2023, followed by contraction in the subsequent years.

Reported Debt to Capital Ratio

This ratio is reported starting from 2023, where it was 0.25. It increased to 0.35 in 2024 and further climbed to 0.63 in 2025. The upward trend reflects a growing proportion of debt relative to total capital, implying increasing leverage.

Adjusted Total Debt

Adjusted total debt showed modest increases from 177,246 thousand in 2020 to 250,218 thousand in 2022. A sharp rise occurred in 2023 to 3,487,000 thousand, which continued with further increases to 3,534,000 thousand in 2024 and 4,105,900 thousand in 2025. This significant increase indicates a considerable accumulation of debt when adjustments are factored in.

Adjusted Total Capital

Adjusted total capital followed an increasing trend from 3,411,510 thousand in 2020 to a peak of 14,134,300 thousand in 2023, before declining to 10,644,500 thousand in 2024 and 7,613,600 thousand in 2025. This trend mirrors the pattern observed in total capital, showing growth followed by retrenchment.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio remained low and relatively stable between 0.04 and 0.05 from 2020 to 2022. A notable increase occurred in 2023, rising to 0.25, then further to 0.33 in 2024 and continuing upward to 0.54 in 2025. This progression indicates a growing leverage position, with debt constituting a larger fraction of the capital base after adjustments.

In summary, the company experienced substantial growth in capital up to 2023, followed by significant reductions in both total and adjusted capital in subsequent years. Concurrently, total debt and adjusted total debt markedly increased starting in 2023, leading to higher reported and adjusted debt to capital ratios. This shift points to increased reliance on debt financing and a notable change in the financial leverage and risk profile beginning in 2023 and intensifying through 2025.

The data exhibits notable fluctuations in the company's financial position over the observed periods. Total assets show a consistent upward trend from March 31, 2020, through March 31, 2023, peaking at 15,862,100 thousand US dollars. This is followed by a substantial decline in subsequent years, with totals falling to 9,181,700 thousand US dollars by March 31, 2025.

Stockholders’ equity similarly increases from 2,539,244 thousand US dollars in 2020 to a high of 9,042,500 thousand US dollars in 2023. After this peak, equity declines sharply to approximately 2,137,700 thousand US dollars by 2025, reflecting a considerable reduction in the company's net assets attributable to shareholders during the latter years.

Reported Financial Leverage

This ratio decreases gradually from 1.95 in 2020 to a low of 1.72 in 2022, indicating improved leverage conditions during this time. However, it rises again in subsequent years, reaching a notably high level of 4.29 by 2025, signifying an increased reliance on debt relative to equity and a possible escalation in financial risk.

Adjusted Total Assets

Mirroring the trend of reported total assets, adjusted total assets increase steadily until 2023, reaching about 15,818,600 thousand US dollars. This amount then decreases sharply in the following years to approximately 9,182,200 thousand US dollars by 2025. The adjusted figures generally track closely with reported totals, suggesting consistent asset valuation methods over time.

Adjusted Stockholders’ Equity

The adjusted equity levels demonstrate a growing trend from 3,234,264 thousand US dollars in 2020 to a peak of over 10,647,300 thousand US dollars in 2023. Following this, there is a marked decline to 3,507,700 thousand US dollars by 2025, reflecting changes in equity value that are more pronounced than those seen in the reported equity figures.

Adjusted Financial Leverage

This ratio decreases from 1.49 in 2020 to a minimum of 1.38 in 2022, suggesting an improving financial structure early in the period. From 2023 onward, the adjusted leverage rises progressively to 2.62 in 2025, indicating an increasing proportion of debt relative to equity but at a somewhat lower level than the reported leverage, implying adjustments moderate the perceived financial risk.

Overall, the data reveals a phase of asset and equity growth until 2023, followed by a period of contraction and increased leverage. The rising financial leverage ratios in the later years, especially the reported figure, highlight a shift towards greater financial risk, possibly due to higher borrowing or reduced equity base. The adjusted figures, while following a similar pattern, consistently present a more conservative risk estimate.

The financial performance exhibits significant volatility over the observed periods, with marked shifts in profitability and revenue levels.

Net Income (Loss) Trends

The company reported positive net income from 2020 to 2022, peaking at approximately $588.9 million in 2021. However, starting in 2023, there is a notable transition to substantial net losses, escalating sharply to over $4.4 billion by 2025. This negative trend suggests rising costs or impairments outpacing revenue growth in recent years.

Net Revenue Trends

Net revenue demonstrated a steady upward trajectory from 2020 through 2022, growing from approximately $3.1 billion to $3.5 billion. A significant jump occurred in 2023, with revenue approximating $5.35 billion and maintaining a similar level through 2024 and 2025. This indicates effective revenue expansion strategies or market growth despite overall profitability declines.

Reported Net Profit Margin

Profit margins followed a similar pattern to net income. Margins were healthy and positive between 2020 and 2022, peaking near 17.5% in 2021. From 2023 onwards, margins turned sharply negative, worsening significantly to almost -80% by 2025. This deterioration highlights increasingly unfavorable cost structures or extraordinary charges outweighing revenue.

Adjusted Net Income (Loss)

Adjusted net income mirrors the net income trend but with more pronounced fluctuations. It rose strongly to about $835 million in 2021 but then declined to losses starting 2023, reaching nearly -$4.6 billion in 2025. The adjustments suggest that non-recurring items significantly impact the company's earnings, worsening in recent years.

Adjusted Net Revenue

Adjusted revenue figures align closely with reported revenue, showing growth from around $3.03 billion in 2020 to over $5.64 billion in 2025. The consistent revenue base contrasts sharply with the deteriorating profitability, indicating rising expenses or adverse adjustments not related to core revenue operations.

Adjusted Net Profit Margin

The adjusted profit margin also displays a similar dynamic to reported margins, with positive values up to 2021 (highest at 23.64%), followed by steep negative margins from 2023 through 2025, reaching almost -82%. This confirms that after excluding certain items, profitability challenges persist and intensify over time.

Overall, while revenue growth is consistent and marked especially from 2023 onwards, the company experiences severe declines in profitability starting in 2023. The deepening net losses and negative margins, both reported and adjusted, imply operational difficulties, increased costs, or significant non-recurring expenses impacting financial performance adversely during the latter periods under review.

Net income (loss)

Net income showed an increasing trend from 2020 through 2021, peaking at 588,886 thousand USD. This was followed by a decline in 2022 to 418,022 thousand USD, and a significant shift to losses in 2023, 2024, and 2025 with values of -1,124,700 thousand USD, -3,744,200 thousand USD, and -4,478,900 thousand USD, respectively, indicating worsening profitability over the latter years.

Stockholders’ equity

Stockholders' equity increased consistently from 2,539,244 thousand USD in 2020 to a peak of 9,042,500 thousand USD in 2023. However, a notable decline was observed thereafter, falling to 5,667,900 thousand USD in 2024, and further decreasing to 2,137,700 thousand USD in 2025, suggesting a substantial reduction in net assets following the peak.

Reported ROE

Reported Return on Equity (ROE) followed a pattern consistent with net income and equity changes. It improved from 15.93% in 2020 to 17.67% in 2021, then decreased to 10.97% in 2022. The ratio turned negative in 2023 at -12.44%, worsening significantly in 2024 to -66.06%, and further deteriorated in 2025 to -209.52%, reflecting the sharp losses and reduced equity base impacting shareholder returns.

Adjusted net income (loss)

The adjusted net income figures show a similar pattern to the reported net income, rising from 338,266 thousand USD in 2020 to a high of 834,863 thousand USD in 2021, then declining sharply from 2022 onwards. Losses intensified significantly in the last three years, reaching -1,386,600 thousand USD in 2023, -3,849,500 thousand USD in 2024, and -4,602,900 thousand USD in 2025, which underscores consistent operational challenges.

Adjusted stockholders’ equity

Adjusted stockholders' equity increased steadily from 3,234,264 thousand USD in 2020 to 10,647,300 thousand USD in 2023, demonstrating growth in the company’s adjusted net asset position up to that point. Similar to the unadjusted equity, it decreased sharply in the subsequent years to 7,110,500 thousand USD in 2024 and 3,507,700 thousand USD in 2025, indicating erosion of adjusted shareholder value amid financial difficulties.

Adjusted ROE

The adjusted ROE exhibited early growth from 10.46% in 2020 to 19.83% in 2021, followed by a decline to 7.5% in 2022. In line with adjusted net income trends, adjusted ROE became negative starting in 2023 at -13.02% and deepened to -54.14% in 2024 and -131.22% in 2025. These negative returns reflect the ongoing adjusted losses and shrinking equity that severely impacted profitability and shareholder returns over the most recent years.

The financial data over the six-year period reveals significant volatility in profitability indicators, with a notable downward trend in net income and adjusted net income from the fiscal year ending March 31, 2023, onwards. Despite initial growth and positive income results through March 31, 2022, subsequent years depict substantial losses, indicating considerable challenges in profitability.

Net Income (Loss)

From March 31, 2020, to March 31, 2022, net income showed strong positive figures, reaching a peak in fiscal year 2021. However, beginning in 2023, net income experienced a sharp decline, moving into significant negative territory. This downward shift deepened in the subsequent years, indicating a persistent and increasing loss.

Total Assets

Total assets increased steadily from the fiscal year ending 2020 through 2023, peaking dramatically in 2023 before declining in 2024 and 2025. The initial growth suggests asset expansion or acquisitions, while the later decline may reflect asset disposals, impairments, or restructuring.

Reported Return on Assets (ROA)

Reported ROA followed a similar pattern with an increase from 2020 to 2021, reaching nearly 10%, before declining sharply afterwards. By 2023, ROA had turned negative and worsened further in the final years, accompanying the net losses and indicating inefficient use of assets to generate profit during the downturn.

Adjusted Net Income (Loss)

Adjusted net income mirrors the trend in reported net income, with positive adjusted earnings through 2022 and substantial losses thereafter. The magnitude of adjusted losses is even greater in later years, reflecting adjustments that may include non-recurring items or expenses that exacerbate the net loss position.

Adjusted Total Assets

Adjusted total assets closely parallel the pattern of reported total assets, with growth until 2023 and a decline thereafter. This maintains consistency in the perspective on the asset base, further underscoring the shrinking asset values following an expansion phase.

Adjusted ROA

Adjusted ROA shows an initial increase, peaking in 2021, followed by a decrease turning negative in 2023 and deteriorating sharply in subsequent years. The adjusted metric indicates an even more pronounced decline in asset profitability once accounting adjustments are considered, reflecting growing inefficiencies and losses.

In summary, the analyzed period reveals a transition from growth and profitability towards significant financial distress marked by heavy losses and declining asset values in the most recent years. The diminishing ROA metrics underscore the declining effectiveness of asset utilization and profitability, conveying a pressing need for strategic and operational reassessment.