Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
Take-Two Interactive Software Inc., solvency 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 comprehensive review of the solvency ratios reveals a significant deterioration in the company's financial stability between March 2020 and March 2025. The entity has transitioned from a position of minimal leverage and high coverage to a high-debt structure with negative earnings capacity to service its obligations.
- Debt and Capital Structure
- A sharp upward trend is observed across all leverage metrics. The debt to equity ratio rose from 0.34 in March 2023 to 1.71 by March 2025, indicating a substantial shift toward debt financing relative to shareholder equity. Similarly, the debt to assets ratio increased from 0.19 in 2023 to 0.40 in 2025, signifying that a larger portion of the company's assets are now financed through debt. This trend is further reinforced by the debt to capital ratio, which climbed from 0.25 to 0.63 over the same period.
- Financial Leverage
- Financial leverage remained relatively stable between 2020 and 2023, fluctuating between 1.72 and 1.95. However, a significant escalation occurred in the final two years, rising to 2.16 in March 2024 and peaking at 4.29 in March 2025. This spike suggests a rapid increase in the use of debt to acquire additional assets.
- Coverage Ratios
- The most critical decline is evident in the coverage ratios. Interest coverage plummeted from a high of 174.85 in March 2020 to a negative value of -9.32 in March 2023, further deteriorating to -25.85 by March 2025. Fixed charge coverage followed an identical trajectory, moving from 15.32 in 2020 to -16.81 in 2025. The transition into negative territory indicates that the company's operating income is no longer sufficient to cover its interest expenses and other fixed obligations.
In summary, the solvency profile has shifted from an extremely conservative state in 2020-2022 to a high-risk state by 2025, characterized by escalating debt levels and an inability to cover financial charges from current operations.
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Debt to Equity
Take-Two Interactive Software Inc., debt to equity 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) | |||||||
| Short-term debt, net | 1,148,500) | 24,600) | 1,346,800) | —) | —) | —) | |
| Long-term debt, net | 2,512,600) | 3,058,300) | 1,733,000) | —) | —) | —) | |
| Total debt | 3,661,100) | 3,082,900) | 3,079,800) | —) | —) | —) | |
| Stockholders’ equity | 2,137,700) | 5,667,900) | 9,042,500) | 3,809,659) | 3,331,892) | 2,539,244) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 1.71 | 0.54 | 0.34 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Alphabet Inc. | 0.12 | 0.05 | 0.05 | 0.06 | 0.06 | — | |
| Comcast Corp. | 1.02 | 1.16 | 1.17 | 1.17 | 0.99 | — | |
| Meta Platforms Inc. | 0.28 | 0.16 | 0.12 | 0.08 | 0.00 | — | |
| Netflix Inc. | 0.54 | 0.63 | 0.71 | 0.69 | 0.97 | — | |
| Walt Disney Co. | 0.38 | 0.46 | 0.47 | 0.51 | 0.62 | 0.71 | |
| Debt to Equity, Sector | |||||||
| Media & Entertainment | 0.31 | 0.29 | 0.30 | 0.32 | 0.31 | — | |
| Debt to Equity, Industry | |||||||
| Communication Services | 0.57 | 0.56 | 0.62 | 0.65 | 0.65 | — | |
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
Debt to equity = Total debt ÷ Stockholders’ equity
= 3,661,100 ÷ 2,137,700 = 1.71
2 Click competitor name to see calculations.
An analysis of the solvency profile reveals a significant increase in financial leverage and a deterioration of the equity cushion over the period ending March 31, 2025.
- Total Debt Trends
- Total debt levels remained relatively stable between March 31, 2023, and March 31, 2024, hovering around 3.08 billion US dollars. However, a notable increase is observed by March 31, 2025, with total debt rising to 3.66 billion US dollars, indicating an expansion of the company's long-term liabilities.
- Stockholders' Equity Fluctuations
- Equity experienced extreme volatility during the analyzed period. Following a period of steady growth that peaked at 9.04 billion US dollars on March 31, 2023, there was a precipitous decline. Equity fell to 5.67 billion US dollars in 2024 and further contracted to 2.14 billion US dollars by March 31, 2025, representing a substantial reduction in the company's net asset base.
- Debt to Equity Ratio Analysis
- The debt to equity ratio demonstrates a sharp upward trajectory, reflecting the combined effect of rising debt and falling equity. The ratio moved from a conservative 0.34 in 2023 to 0.54 in 2024, before spiking to 1.71 by March 31, 2025. This trend signifies a fundamental shift in the capital structure, moving from a position of low leverage to one where total debt significantly exceeds stockholders' equity, thereby increasing the overall financial risk profile.
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Debt to Equity (including Operating Lease Liability)
Take-Two Interactive Software Inc., debt to equity (including operating lease liability) 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) | |||||||
| Short-term debt, net | 1,148,500) | 24,600) | 1,346,800) | —) | —) | —) | |
| Long-term debt, net | 2,512,600) | 3,058,300) | 1,733,000) | —) | —) | —) | |
| Total debt | 3,661,100) | 3,082,900) | 3,079,800) | —) | —) | —) | |
| Current operating lease liabilities | 61,500) | 63,800) | 60,200) | 38,921) | 31,595) | 25,187) | |
| Non-current operating lease liabilities | 383,300) | 387,300) | 347,000) | 211,297) | 159,671) | 152,059) | |
| Total debt (including operating lease liability) | 4,105,900) | 3,534,000) | 3,487,000) | 250,218) | 191,266) | 177,246) | |
| Stockholders’ equity | 2,137,700) | 5,667,900) | 9,042,500) | 3,809,659) | 3,331,892) | 2,539,244) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 1.92 | 0.62 | 0.39 | 0.07 | 0.06 | 0.07 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Alphabet Inc. | 0.16 | 0.09 | 0.11 | 0.12 | 0.11 | — | |
| Comcast Corp. | 1.08 | 1.23 | 1.25 | 1.26 | 1.06 | — | |
| Meta Platforms Inc. | 0.39 | 0.27 | 0.25 | 0.22 | 0.12 | — | |
| Netflix Inc. | 0.64 | 0.73 | 0.82 | 0.81 | 1.14 | — | |
| Walt Disney Co. | 0.41 | 0.49 | 0.51 | 0.55 | 0.66 | 0.75 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Media & Entertainment | 0.37 | 0.35 | 0.37 | 0.39 | 0.38 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Communication Services | 0.68 | 0.69 | 0.76 | 0.80 | 0.79 | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 4,105,900 ÷ 2,137,700 = 1.92
2 Click competitor name to see calculations.
Analysis of solvency trends reveals a significant shift in capital structure between 2020 and 2025, moving from a conservative, low-leverage position to a highly leveraged state.
- Total Debt Trajectory
- Total debt, including operating lease liabilities, remained relatively stable and low between 2020 and 2022, ranging from 177 million to 250 million US dollars. A substantial increase is observed starting in 2023, where debt surged to 3.49 billion US dollars. This upward trend continued through 2024 and 2025, culminating in a total debt balance of 4.11 billion US dollars.
- Stockholders' Equity Volatility
- Equity showed consistent growth from 2020 to 2022, reaching a peak of 9.04 billion US dollars in 2023. Following this peak, a sharp contraction is evident, with equity falling to 5.67 billion US dollars in 2024 and further declining to 2.14 billion US dollars by March 31, 2025.
- Debt to Equity Ratio Interpretation
- The debt to equity ratio was minimal and stable between 0.06 and 0.07 from 2020 to 2022. A marked increase began in 2023 with a ratio of 0.39, which climbed to 0.62 in 2024. By 2025, the ratio experienced a dramatic spike to 1.92. This progression indicates that the company's reliance on debt has increased substantially relative to its equity base, signaling a fundamental change in its financial risk profile and solvency position.
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Debt to Capital
Take-Two Interactive Software Inc., debt to capital 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) | |||||||
| Short-term debt, net | 1,148,500) | 24,600) | 1,346,800) | —) | —) | —) | |
| Long-term debt, net | 2,512,600) | 3,058,300) | 1,733,000) | —) | —) | —) | |
| Total debt | 3,661,100) | 3,082,900) | 3,079,800) | —) | —) | —) | |
| Stockholders’ equity | 2,137,700) | 5,667,900) | 9,042,500) | 3,809,659) | 3,331,892) | 2,539,244) | |
| Total capital | 5,798,800) | 8,750,800) | 12,122,300) | 3,809,659) | 3,331,892) | 2,539,244) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.63 | 0.35 | 0.25 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Alphabet Inc. | 0.11 | 0.05 | 0.05 | 0.06 | 0.06 | — | |
| Comcast Corp. | 0.51 | 0.54 | 0.54 | 0.54 | 0.50 | — | |
| Meta Platforms Inc. | 0.22 | 0.14 | 0.11 | 0.08 | 0.00 | — | |
| Netflix Inc. | 0.35 | 0.39 | 0.41 | 0.41 | 0.49 | — | |
| Walt Disney Co. | 0.28 | 0.31 | 0.32 | 0.34 | 0.38 | 0.41 | |
| Debt to Capital, Sector | |||||||
| Media & Entertainment | 0.24 | 0.22 | 0.23 | 0.24 | 0.24 | — | |
| Debt to Capital, Industry | |||||||
| Communication Services | 0.36 | 0.36 | 0.38 | 0.39 | 0.40 | — | |
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
Debt to capital = Total debt ÷ Total capital
= 3,661,100 ÷ 5,798,800 = 0.63
2 Click competitor name to see calculations.
An analysis of the solvency position reveals a significant increase in the company's reliance on debt relative to its total capital over the observed period. While total capital experienced substantial volatility, the overall trend indicates a transition toward a more leveraged capital structure.
- Total Debt Trends
- Total debt remained relatively stable between March 31, 2023, and March 31, 2024, holding at approximately US$ 3.08 billion. A notable increase was recorded by March 31, 2025, with total debt rising to US$ 3.66 billion, representing a growth in total liabilities in the most recent fiscal year.
- Total Capital Fluctuations
- Total capital showed a strong upward trend from 2020, peaking at US$ 12.12 billion on March 31, 2023. Subsequently, a significant downward trend emerged, with capital decreasing to US$ 8.75 billion in 2024 and further contracting to US$ 5.80 billion by March 31, 2025.
- Debt to Capital Ratio Evolution
- The debt to capital ratio has increased consistently, moving from 0.25 in 2023 to 0.35 in 2024, and reaching 0.63 by March 31, 2025. This acceleration in the ratio is driven by the concurrent effect of increasing total debt and a diminishing total capital base, reflecting a substantial increase in financial leverage.
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Debt to Capital (including Operating Lease Liability)
Take-Two Interactive Software Inc., debt to capital (including operating lease liability) 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) | |||||||
| Short-term debt, net | 1,148,500) | 24,600) | 1,346,800) | —) | —) | —) | |
| Long-term debt, net | 2,512,600) | 3,058,300) | 1,733,000) | —) | —) | —) | |
| Total debt | 3,661,100) | 3,082,900) | 3,079,800) | —) | —) | —) | |
| Current operating lease liabilities | 61,500) | 63,800) | 60,200) | 38,921) | 31,595) | 25,187) | |
| Non-current operating lease liabilities | 383,300) | 387,300) | 347,000) | 211,297) | 159,671) | 152,059) | |
| Total debt (including operating lease liability) | 4,105,900) | 3,534,000) | 3,487,000) | 250,218) | 191,266) | 177,246) | |
| Stockholders’ equity | 2,137,700) | 5,667,900) | 9,042,500) | 3,809,659) | 3,331,892) | 2,539,244) | |
| Total capital (including operating lease liability) | 6,243,600) | 9,201,900) | 12,529,500) | 4,059,877) | 3,523,158) | 2,716,490) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.66 | 0.38 | 0.28 | 0.06 | 0.05 | 0.07 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Alphabet Inc. | 0.14 | 0.09 | 0.10 | 0.10 | 0.10 | — | |
| Comcast Corp. | 0.52 | 0.55 | 0.56 | 0.56 | 0.52 | — | |
| Meta Platforms Inc. | 0.28 | 0.21 | 0.20 | 0.18 | 0.10 | — | |
| Netflix Inc. | 0.39 | 0.42 | 0.45 | 0.45 | 0.53 | — | |
| Walt Disney Co. | 0.29 | 0.33 | 0.34 | 0.35 | 0.40 | 0.43 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Media & Entertainment | 0.27 | 0.26 | 0.27 | 0.28 | 0.28 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Communication Services | 0.41 | 0.41 | 0.43 | 0.44 | 0.44 | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 4,105,900 ÷ 6,243,600 = 0.66
2 Click competitor name to see calculations.
The solvency profile reflects a fundamental shift in the capital structure between March 31, 2020, and March 31, 2025, transitioning from a low-leverage position to a significantly more debt-dependent financial posture.
- Total Debt Trajectory
- A period of relative stability was observed from March 2020 to March 2022, with total debt, including operating lease liabilities, increasing modestly from 177.2 million to 250.2 million US dollars. A substantial inflection point occurred in March 2023, where debt escalated sharply to 3.487 billion US dollars. This upward trend continued through March 2025, reaching 4.106 billion US dollars.
- Total Capital Dynamics
- Total capital experienced significant volatility over the analyzed period. An initial growth phase saw capital rise from 2.716 billion US dollars in March 2020 to a peak of 12.530 billion US dollars in March 2023. Following this peak, a consistent contraction occurred, with capital decreasing to 9.202 billion US dollars in March 2024 and further declining to 6.244 billion US dollars by March 2025.
- Debt to Capital Ratio Interpretation
- The debt to capital ratio remained marginal and stable between 0.05 and 0.07 from March 2020 through March 2022. Starting in March 2023, the ratio increased to 0.28, marking a significant departure from previous levels. This expansion accelerated in the subsequent years, rising to 0.38 in March 2024 and reaching 0.66 by March 2025. The simultaneous increase in total debt and the reduction in total capital have compounded the growth of this ratio, indicating that debt now represents a majority share of the total capital structure.
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Debt to Assets
Take-Two Interactive Software Inc., debt to assets 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) | |||||||
| Short-term debt, net | 1,148,500) | 24,600) | 1,346,800) | —) | —) | —) | |
| Long-term debt, net | 2,512,600) | 3,058,300) | 1,733,000) | —) | —) | —) | |
| Total debt | 3,661,100) | 3,082,900) | 3,079,800) | —) | —) | —) | |
| Total assets | 9,180,700) | 12,216,900) | 15,862,100) | 6,546,219) | 6,028,218) | 4,948,832) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.40 | 0.25 | 0.19 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Alphabet Inc. | 0.09 | 0.04 | 0.04 | 0.04 | 0.04 | — | |
| Comcast Corp. | 0.36 | 0.37 | 0.37 | 0.37 | 0.34 | — | |
| Meta Platforms Inc. | 0.16 | 0.11 | 0.08 | 0.06 | 0.00 | — | |
| Netflix Inc. | 0.26 | 0.29 | 0.30 | 0.30 | 0.35 | — | |
| Walt Disney Co. | 0.21 | 0.23 | 0.23 | 0.24 | 0.27 | 0.29 | |
| Debt to Assets, Sector | |||||||
| Media & Entertainment | 0.18 | 0.17 | 0.17 | 0.17 | 0.17 | — | |
| Debt to Assets, Industry | |||||||
| Communication Services | 0.26 | 0.25 | 0.26 | 0.27 | 0.27 | — | |
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
Debt to assets = Total debt ÷ Total assets
= 3,661,100 ÷ 9,180,700 = 0.40
2 Click competitor name to see calculations.
The solvency profile indicates a significant shift in the capital structure, characterized by a progressive increase in financial leverage over the analyzed period.
- Total Debt Trends
- Debt levels remained relatively stable between March 31, 2023, and March 31, 2024, holding at approximately US$ 3.08 billion. However, a notable increase is observed by March 31, 2025, where total debt rose to US$ 3.66 billion.
- Total Asset Fluctuations
- Total assets experienced a substantial peak on March 31, 2023, reaching US$ 15.86 billion. Following this peak, a consistent downward trend occurred, with assets decreasing to US$ 12.22 billion in 2024 and further contracting to US$ 9.18 billion by March 31, 2025.
- Debt to Assets Ratio Analysis
- The debt to assets ratio demonstrates a steep upward trajectory, rising from 0.19 in 2023 to 0.25 in 2024, and reaching 0.40 by March 31, 2025. This increase is driven by the simultaneous rise in total debt and the contraction of the total asset base. The result is a significant increase in the proportion of assets financed by debt, signaling a weakened solvency position and higher financial risk as of the latest reporting date.
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Debt to Assets (including Operating Lease Liability)
Take-Two Interactive Software Inc., debt to assets (including operating lease liability) 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) | |||||||
| Short-term debt, net | 1,148,500) | 24,600) | 1,346,800) | —) | —) | —) | |
| Long-term debt, net | 2,512,600) | 3,058,300) | 1,733,000) | —) | —) | —) | |
| Total debt | 3,661,100) | 3,082,900) | 3,079,800) | —) | —) | —) | |
| Current operating lease liabilities | 61,500) | 63,800) | 60,200) | 38,921) | 31,595) | 25,187) | |
| Non-current operating lease liabilities | 383,300) | 387,300) | 347,000) | 211,297) | 159,671) | 152,059) | |
| Total debt (including operating lease liability) | 4,105,900) | 3,534,000) | 3,487,000) | 250,218) | 191,266) | 177,246) | |
| Total assets | 9,180,700) | 12,216,900) | 15,862,100) | 6,546,219) | 6,028,218) | 4,948,832) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.45 | 0.29 | 0.22 | 0.04 | 0.03 | 0.04 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Alphabet Inc. | 0.11 | 0.07 | 0.07 | 0.08 | 0.08 | — | |
| Comcast Corp. | 0.39 | 0.40 | 0.39 | 0.39 | 0.37 | — | |
| Meta Platforms Inc. | 0.23 | 0.18 | 0.17 | 0.15 | 0.09 | — | |
| Netflix Inc. | 0.31 | 0.34 | 0.35 | 0.35 | 0.41 | — | |
| Walt Disney Co. | 0.23 | 0.25 | 0.25 | 0.26 | 0.29 | 0.31 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Media & Entertainment | 0.21 | 0.20 | 0.21 | 0.22 | 0.21 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Communication Services | 0.31 | 0.30 | 0.32 | 0.33 | 0.33 | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 4,105,900 ÷ 9,180,700 = 0.45
2 Click competitor name to see calculations.
The solvency profile of the organization has undergone a significant transformation between March 2020 and March 2025, moving from a position of minimal leverage to a substantially more debt-burdened capital structure.
- Debt Accumulation Patterns
- Total debt, including operating lease liabilities, remained relatively stable and low from 2020 to 2022, ranging between US$ 177.2 million and US$ 250.2 million. A dramatic escalation occurred in March 2023, where total debt rose to US$ 3.487 billion. This upward trajectory continued through the following periods, reaching US$ 4.105 billion by March 2025.
- Asset Value Fluctuations
- Total assets exhibited steady growth from US$ 4.948 billion in 2020 to US$ 6.546 billion in 2022. A sharp peak was observed in March 2023 at US$ 15.862 billion. However, the subsequent two years show a consistent contraction in the asset base, falling to US$ 12.216 billion in 2024 and further to US$ 9.180 billion by March 2025.
- Debt to Assets Ratio Trend
- The debt to assets ratio remained negligible between 2020 and 2022, fluctuating minimally between 0.03 and 0.04. A structural shift occurred in 2023, with the ratio increasing to 0.22. The convergence of rising total debt and a shrinking asset base has accelerated this trend, resulting in a ratio of 0.29 in 2024 and a significant increase to 0.45 by March 2025.
The analysis indicates a deteriorating solvency position. While the initial surge in debt in 2023 was accompanied by a massive expansion of the asset base, the period from 2024 to 2025 is characterized by a negative divergence. The simultaneous increase in liabilities and decrease in total assets has led to a rapid increase in the proportion of assets financed by debt, nearly doubling the ratio from 0.22 to 0.45 within three years.
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Financial Leverage
Take-Two Interactive Software Inc., financial leverage 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) | |||||||
| Total assets | 9,180,700) | 12,216,900) | 15,862,100) | 6,546,219) | 6,028,218) | 4,948,832) | |
| Stockholders’ equity | 2,137,700) | 5,667,900) | 9,042,500) | 3,809,659) | 3,331,892) | 2,539,244) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 4.29 | 2.16 | 1.75 | 1.72 | 1.81 | 1.95 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Alphabet Inc. | 1.43 | 1.39 | 1.42 | 1.43 | 1.43 | — | |
| Comcast Corp. | 2.81 | 3.11 | 3.20 | 3.18 | 2.87 | — | |
| Meta Platforms Inc. | 1.68 | 1.51 | 1.50 | 1.48 | 1.33 | — | |
| Netflix Inc. | 2.09 | 2.17 | 2.37 | 2.34 | 2.81 | — | |
| Walt Disney Co. | 1.80 | 1.95 | 2.07 | 2.14 | 2.30 | 2.41 | |
| Financial Leverage, Sector | |||||||
| Media & Entertainment | 1.72 | 1.73 | 1.80 | 1.83 | 1.82 | — | |
| Financial Leverage, Industry | |||||||
| Communication Services | 2.22 | 2.27 | 2.39 | 2.45 | 2.43 | — | |
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
Financial leverage = Total assets ÷ Stockholders’ equity
= 9,180,700 ÷ 2,137,700 = 4.29
2 Click competitor name to see calculations.
An analysis of the company's solvency position reveals a significant shift in financial leverage over the six-year period ending March 31, 2025. While the organization maintained a relatively stable and conservative leverage profile between 2020 and 2023, the subsequent two years exhibit a sharp increase in financial risk, characterized by a rapid contraction of stockholders' equity relative to total assets.
- Asset and Equity Volatility
- Total assets experienced a period of steady growth from 2020 to 2022, followed by a substantial surge in 2023, where assets peaked at 15.86 billion US$. However, a consistent decline followed, with assets reducing to 9.18 billion US$ by March 31, 2025. Stockholders' equity followed a similar trajectory of growth and peak in 2023 at 9.04 billion US$, but the subsequent decline was more pronounced, falling sharply to 2.14 billion US$ by the end of the observed period.
- Financial Leverage Trends
- The financial leverage ratio remained stable and showed a slight downward trend from 1.95 in 2020 to 1.72 in 2022, indicating a period of improved solvency and a lower reliance on debt. This stability persisted through 2023 with a ratio of 1.75. A reversal occurred in 2024 as the ratio climbed to 2.16, culminating in a dramatic increase to 4.29 by March 31, 2025.
- Solvency Implications
- The escalation of the leverage ratio to 4.29 suggests a fundamental change in the capital structure. Because the reduction in stockholders' equity outpaced the reduction in total assets, the proportion of assets financed by liabilities has increased significantly. This trajectory indicates a heightened risk profile and a potential reduction in the financial cushion available to creditors, marking a transition from a conservative financing strategy to a highly leveraged position.
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Interest Coverage
Take-Two Interactive Software Inc., interest coverage 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) | |||||||
| Net income (loss) | (4,478,900) | (3,744,200) | (1,124,700) | 418,022) | 588,886) | 404,459) | |
| Add: Income tax expense | (12,400) | 41,400) | (213,400) | 47,376) | 88,930) | 53,980) | |
| Add: Interest expense | 167,300) | 140,600) | 129,600) | 18,628) | 6,207) | 2,637) | |
| Earnings before interest and tax (EBIT) | (4,324,000) | (3,562,200) | (1,208,500) | 484,026) | 684,023) | 461,076) | |
| Solvency Ratio | |||||||
| Interest coverage1 | -25.85 | -25.34 | -9.32 | 25.98 | 110.20 | 174.85 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Alphabet Inc. | 216.80 | 448.07 | 279.30 | 200.80 | 263.24 | — | |
| Comcast Corp. | 6.84 | 5.52 | 6.01 | 3.38 | 5.46 | — | |
| Meta Platforms Inc. | 74.76 | 99.83 | 107.34 | 164.74 | 3,153.27 | — | |
| Netflix Inc. | 17.38 | 14.87 | 9.87 | 8.45 | 8.63 | — | |
| Walt Disney Co. | 7.62 | 4.66 | 3.42 | 4.41 | 2.66 | -0.06 | |
| Interest Coverage, Sector | |||||||
| Media & Entertainment | 34.18 | 29.67 | 22.91 | 18.95 | 24.80 | — | |
| Interest Coverage, Industry | |||||||
| Communication Services | 14.73 | 12.37 | 10.21 | 8.50 | 11.90 | — | |
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
Interest coverage = EBIT ÷ Interest expense
= -4,324,000 ÷ 167,300 = -25.85
2 Click competitor name to see calculations.
An analysis of the solvency metrics from March 31, 2020, to March 31, 2025, reveals a significant deterioration in the capacity to service debt through operating profits. The company transitioned from a position of substantial coverage to a persistent deficit, characterized by deepening operating losses and escalating financing costs.
- Earnings Before Interest and Tax (EBIT) Trends
- Operating performance peaked in 2021 at 684 million US dollars before entering a steep decline. A critical inflection point occurred in 2023, where EBIT shifted from a positive 484 million US dollars in 2022 to a negative 1.2 billion US dollars. This negative trajectory intensified through 2024 and 2025, reaching a loss of 4.3 billion US dollars, indicating a severe erosion of operating profitability.
- Interest Expense Progression
- Interest costs exhibited consistent growth throughout the period. Expenses remained relatively low between 2020 and 2022, ranging from 2.6 million to 18.6 million US dollars. However, a substantial increase was recorded in 2023, with expenses jumping to 129.6 million US dollars and continuing to climb to 167.3 million US dollars by March 31, 2025. This suggests a significant increase in the total debt burden or a rise in the cost of borrowing.
- Interest Coverage Ratio Analysis
- The interest coverage ratio reflects the combined impact of falling EBIT and rising interest costs. In 2020, the ratio stood at 174.85, representing an extremely strong capacity to cover interest payments. This ratio declined sharply to 25.98 by 2022 and turned negative in 2023 at -9.32. By March 31, 2025, the ratio reached -25.85, confirming that operating earnings are insufficient to cover interest obligations, which substantially increases the company's financial risk profile.
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Fixed Charge Coverage
Take-Two Interactive Software Inc., fixed charge coverage 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) | |||||||
| Net income (loss) | (4,478,900) | (3,744,200) | (1,124,700) | 418,022) | 588,886) | 404,459) | |
| Add: Income tax expense | (12,400) | 41,400) | (213,400) | 47,376) | 88,930) | 53,980) | |
| Add: Interest expense | 167,300) | 140,600) | 129,600) | 18,628) | 6,207) | 2,637) | |
| Earnings before interest and tax (EBIT) | (4,324,000) | (3,562,200) | (1,208,500) | 484,026) | 684,023) | 461,076) | |
| Add: Operating lease costs | 84,900) | 80,500) | 109,800) | 46,252) | 37,300) | 29,383) | |
| Earnings before fixed charges and tax | (4,239,100) | (3,481,700) | (1,098,700) | 530,278) | 721,323) | 490,459) | |
| Interest expense | 167,300) | 140,600) | 129,600) | 18,628) | 6,207) | 2,637) | |
| Operating lease costs | 84,900) | 80,500) | 109,800) | 46,252) | 37,300) | 29,383) | |
| Fixed charges | 252,200) | 221,100) | 239,400) | 64,880) | 43,507) | 32,020) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | -16.81 | -15.75 | -4.59 | 8.17 | 16.58 | 15.32 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Alphabet Inc. | 39.92 | 34.54 | 24.36 | 22.90 | 30.80 | — | |
| Comcast Corp. | 5.59 | 4.50 | 4.87 | 2.82 | 4.48 | — | |
| Meta Platforms Inc. | 22.68 | 23.99 | 19.69 | 15.18 | 31.41 | — | |
| Netflix Inc. | 9.55 | 8.20 | 5.64 | 5.00 | 5.46 | — | |
| Walt Disney Co. | 5.64 | 3.53 | 2.71 | 3.25 | 2.07 | 0.32 | |
| Fixed Charge Coverage, Sector | |||||||
| Media & Entertainment | 17.66 | 14.86 | 11.53 | 9.54 | 13.00 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Communication Services | 7.95 | 6.66 | 5.47 | 4.31 | 6.03 | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= -4,239,100 ÷ 252,200 = -16.81
2 Click competitor name to see calculations.
The analysis of solvency metrics reveals a severe deterioration in the ability to cover fixed obligations over the observed six-year period. A transition from a high margin of safety to a significant deficit is evident, driven by the simultaneous occurrence of plummeting earnings and escalating fixed costs.
- Earnings Before Fixed Charges and Tax
- A precipitous decline in earnings is observed. After peaking at 721.3 million USD in 2021, earnings decreased to 530.3 million USD in 2022 before entering negative territory in 2023. This downward trajectory accelerated sharply, reaching a deficit of 4.2 billion USD by 2025.
- Fixed Charges Expenditure
- Fixed charges exhibit a consistent upward trend. Obligations increased moderately between 2020 and 2022, rising from 32.0 million USD to 64.9 million USD. A substantial increase occurred in 2023, where charges jumped to 239.4 million USD, remaining elevated and reaching 252.2 million USD by 2025.
- Fixed Charge Coverage Ratio
- The coverage ratio reflects the divergence between falling earnings and rising costs. The ratio peaked at 16.58 in 2021, indicating an ample capacity to meet obligations. However, a sharp decline occurred in 2022 to 8.17, followed by a shift into negative values in 2023. By 2025, the ratio deteriorated to -16.81, signifying that earnings are entirely insufficient to service fixed charges.
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