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

Debt to Equity Ratio

The debt to equity ratio data is available from June 2022 onwards. It starts at 0.34 in June 2022, showing slight fluctuations around this level with minor increases and decreases, reaching 0.37 in September 2023. A marked upward trend is observed starting from December 2023, peaking substantially at 1.71 by March 2025. This indicates a significant increase in leverage relative to equity in the most recent periods.

Debt to Equity Ratio (Including Operating Lease Liability)

From June 2019 to March 2022, the ratio remains consistently low, fluctuating narrowly between 0.05 and 0.07, reflecting modest use of debt including lease obligations. Beginning June 2022, the ratio rises notably to 0.38 and maintains a gradual upward progression, reaching 0.72 by December 2024 and surging sharply to 1.92 by March 2025. This aligns with the rising trend in the conventional debt to equity ratio but at slightly higher absolute values due to inclusion of lease liabilities.

Debt to Capital Ratio

This ratio is available starting from June 2022, showing stability around 0.24 to 0.27 up to September 2023. Thereafter, it escalates significantly, moving beyond 0.35 at the end of 2023 and ultimately reaching 0.63 by March 2025. This progression points to an increased reliance on debt in the company's capital structure over the recent periods.

Debt to Capital Ratio (Including Operating Lease Liability)

Data from June 2019 to March 2022 shows a low and steady ratio near 0.05 to 0.07. Starting mid-2022, the ratio experiences a step increase to roughly 0.28 and demonstrates a steady upward trend till it rises to 0.42 in December 2024, followed by a significant jump to 0.66 in March 2025. The pattern parallels that of the debt to equity (including leases), indicating consistent growth in leverage when lease liabilities are factored in.

Debt to Assets Ratio

From June 2022 forward, the debt to assets ratio remains around 0.18 to 0.21, with a gradual increase observed through the quarters reaching 0.21 to 0.29 by December 2023. A notable increase occurs in March 2025, where it escalates to 0.40. This suggests the company is using a larger proportion of debt relative to total assets recently.

Debt to Assets Ratio (Including Operating Lease Liability)

The ratio remains quite low (0.03 to 0.04) through early periods until March 2022, then jumps to about 0.21 in June 2022. It follows a moderate upward path thereafter, rising steadily to 0.32 by December 2024 and spiking to 0.45 in March 2025. This mirrors the increasing debt trend seen in other metrics, especially when operating leases are included.

Financial Leverage

The financial leverage ratio starts at 2.09 in June 2019, fluctuating moderately within a range of roughly 1.7 to 2.2 through to March 2023. After March 2023, the ratio decreases slightly to a low of 1.74 and then rises sharply to 4.29 by March 2025. This sharp increase indicates that the company has significantly increased its use of debt relative to equity, suggesting a considerable shift in capital structure.

Overall Analysis

The data indicates that from mid-2022 onwards, Take-Two Interactive Software Inc. has substantially increased its debt levels relative to equity, capital, and assets. Ratios including operating lease liabilities consistently show higher leverage than their counterparts excluding these liabilities, confirming the relevance of leases to the company’s debt profile. The sharp increases in all leverage ratios, particularly from late 2023 through early 2025, suggest a strategy involving greater financial risk or funding for expansion or acquisitions. The notable jump in financial leverage aligns with these observations, indicating a marked rise in financial obligations compared to equity base during this period.

The financial data reveals several notable trends regarding the company's debt, equity, and capital structure over the analyzed periods.

Total Debt

Total debt was not reported until June 30, 2022, after which it remained relatively stable around US$3.08 billion through March 31, 2023. Subsequently, there was a significant increase to approximately US$3.65 billion beginning June 30, 2023, and this level of debt persisted through to March 31, 2025. This suggests a substantial borrowing event or accumulation of debt starting mid-2023.

Total Stockholders’ Equity

Equity showed a generally upward trend from June 30, 2019, where it stood at about US$2.09 billion, rising steadily to peak at roughly US$9.66 billion by June 30, 2022. Following this peak, equity values declined consistently through to March 31, 2025, dropping to approximately US$2.14 billion. This pattern indicates that the company optimised and then substantially reduced its equity base over the observed timeframe.

Debt to Equity Ratio

The debt to equity ratio was first reported in June 30, 2022, starting at a low level around 0.34, with minor fluctuations through early 2023 remaining between 0.32 and 0.37. However, starting from June 30, 2023, there was a sharp increase in the ratio, rising from 0.54 to 1.71 by March 31, 2025. This marks a significant shift towards greater leverage, reflecting increased reliance on debt financing relative to equity.

In summary, the company experienced a phase of equity expansion up to mid-2022 followed by a notable contraction. Concurrently, total debt held steady at a moderate level before rising markedly starting mid-2023. The pronounced increase in the debt to equity ratio after June 2023 highlights a strategic or necessary shift towards higher debt financing, leading to a much more leveraged capital structure by early 2025.

The financial data reveals notable fluctuations in the company's debt, equity, and leverage ratios over the examined quarterly periods.

Total Debt

The total debt, inclusive of operating lease liabilities, remained relatively stable and within a moderate range from mid-2019 through early 2022, fluctuating mostly between approximately 140 million to 250 million US dollars. Beginning in mid-2022, there was a significant and abrupt increase in debt levels, surging to over 3.4 billion US dollars and maintaining this heightened level through the subsequent periods. This suggests a major financing event or an increase in liabilities that dramatically altered the company's capital structure during this timeframe.

Stockholders’ Equity

Stockholders’ equity demonstrated a general upward trend from mid-2019 until early 2022, increasing steadily from about 2.1 billion to nearly 3.8 billion US dollars. However, similar to the debt trend, a substantial and rapid increase occurred in mid-2022, with equity levels escalating sharply to values exceeding 9.4 billion US dollars. Following this peak, equity experienced a decline throughout 2023, falling to around 5.6 billion US dollars by mid-2024 and further decreasing to approximately 2.1 billion US dollars by early 2025, indicating fluctuations in retained earnings or changes in equity contributions.

Debt to Equity Ratio

The debt to equity ratio was relatively low and stable from mid-2019 through early 2022, generally fluctuating between 0.05 and 0.07, which suggests conservative leverage and a strong equity base during this period. Starting in mid-2022, there was a sharp increase in leverage, with the ratio rising significantly to peaks around 0.7 by late 2024 and notably spiking to 1.92 in early 2025. This elevation in the debt-to-equity ratio reflects an increased reliance on debt financing relative to equity and a more leveraged capital structure in the most recent period.

In summary, the data indicate a period of relative financial stability with modest leverage and steadily growing equity up to early 2022. Beyond that point, the company experienced profound changes in its financial structure, marked by large increases in both debt and equity, followed by subsequent declines in equity and elevated leverage ratios. The sharp rise in debt and leverage suggests strategic financial decisions that have materially altered the company's risk profile and capital composition in the latest quarters.

The analysis of the quarterly financial data reveals several notable trends in the company's capital structure and debt levels over the observed periods.

Total Debt

Total debt figures are not reported for the periods prior to June 30, 2022. From that point onward, there is a relatively stable pattern observed around approximately US$3.08 billion for several quarters. Starting from the March 31, 2024 period, a significant increase is apparent, with total debt rising sharply to exceed US$3.65 billion and maintaining that elevated level through the end of the data series on March 31, 2025.

Total Capital

Total capital shows a general increasing trend during the initial periods from June 30, 2019 to March 31, 2022, moving from approximately US$2.09 billion to around US$3.81 billion. However, from June 30, 2022 the reported values dramatically jump to levels in the range of US$11.5 billion to US$12.9 billion, indicating a substantial change in the capital base or possibly a redefinition or restatement in the reporting methodology. Following this peak, a marked decline is observed starting from March 31, 2024, decreasing abruptly from US$8.75 billion to approximately US$5.80 billion at the end of the dataset on March 31, 2025.

Debt to Capital Ratio

The debt to capital ratio begins to be reported from June 30, 2022, with values fluctuating around 0.24 to 0.27 until December 31, 2023. Subsequently, a notable increase in leverage is visible, as the ratio rises sharply to 0.35 at March 31, 2024 and further climbs to 0.63 by March 31, 2025. This indicates a significant increase in the proportion of debt within the company’s capital structure during the final quarters, suggesting either debt growth outpacing capital or a reduction in total capital contributing to increased financial leverage.

Overall, the financial data indicates a phase of relatively stable debt and gradual capital growth followed by a period of substantial shifts starting around mid-2022. The marked increase in total capital mid-2022, followed by a sharp decrease in 2024, accompanied by rising debt levels and a rapidly increasing debt to capital ratio, points to a potential restructuring or significant changes in the company’s financing strategy during the latter part of the observed timeframe.

The financial data exhibits notable trends concerning the company's debt and capital structure over the observed periods.

Total debt (including operating lease liability)

From June 2019 through March 2021, total debt figures remained relatively stable, fluctuating modestly between approximately 146,922 thousand USD and 191,266 thousand USD. A marked upward shift occurred starting in June 2022, with debt escalating sharply to over 3.68 billion USD. This elevated level persisted through subsequent quarters, peaking near 4.12 billion USD by June 2024, before slightly tapering but remaining substantially above earlier levels through March 2025. This pattern indicates significant new borrowing or lease obligations initiated around mid-2022, reflecting a considerable change in financing strategy or increased capital requirements.

Total capital (including operating lease liability)

Total capital demonstrated a steady increase from June 2019, moving from approximately 2.23 billion USD to a peak near 4.06 billion USD by March 2022. However, between June 2022 and March 2025, a stark shift is evident, with total capital figures escalating rapidly to over 13 billion USD in mid-2022, followed by a consistent decline to approximately 6.24 billion USD by March 2025. This volatility suggests periods of substantial capital restructuring or asset revaluation, with an initial surge possibly related to the increase in debt levels, followed by a notable contraction in overall capital resources over the later quarters.

Debt to capital (including operating lease liability) ratio

The debt to capital ratio remained quite low and stable, ranging from 0.05 to 0.07 during the initial period until early 2022, indicating a conservative leverage position. Commencing in June 2022, the ratio jumped significantly to around 0.28, maintaining close to this level until the end of 2023. Subsequently, the ratio climbed further, reaching approximately 0.66 by March 2025. This upward trend reflects a worsening leverage position, with debt comprising a substantially larger portion of total capital. The rising ratio aligns with the observed increases in absolute debt and fluctuations in total capital, underscoring a material shift toward higher financial risk or a strategic decision to increase leverage.

Overall, the data reveals an extended period of financial stability through early 2022, followed by abrupt changes characterized by soaring debt levels and volatile capital structure. The significant rise in the debt to capital ratio highlights increased reliance on debt financing, which may impact the company's financial flexibility and risk profile moving forward.

The financial data reveals several notable trends over the observed periods. Initially, total assets showed a consistent upward trajectory from June 2019 until March 2022, increasing from approximately 4.37 billion US dollars to nearly 17.74 billion US dollars. Post-March 2022, total assets declined steadily, reaching roughly 9.18 billion US dollars by March 2025. This represents a significant contraction in asset base during the latter periods.

Total debt figures are only available starting from June 2022, at about 3.29 billion US dollars. This debt level remained relatively stable through the next few quarters, fluctuating slightly but staying close to that initial amount. However, a substantial increase in total debt is recorded beginning March 2024, increasing from approximately 3.08 billion to about 3.66 billion US dollars by March 2025. This upward shift indicates a marked increase in leverage during the most recent periods.

The debt to assets ratio further supports this analysis. It remained steady around 0.18 to 0.20 between June 2022 and September 2023, reflecting moderate leverage relative to total assets. Starting from December 2023, the ratio increased notably, reaching 0.40 by March 2025. This doubling of the debt-to-assets ratio signals a significant rise in financial leverage, coinciding with the asset base decline and increased total debt levels.

Total Assets

Strong growth phase until early 2022 followed by a pronounced decline across subsequent quarters.

Total Debt

Stable levels observed from mid-2022 to late 2023, then a sharp increase from early 2024 onwards.

Debt to Assets Ratio

Maintained a moderate level around 0.19 initially, then sharply increasing to 0.40 by the end of the analysis period, indicating increased leverage risk.

Overall, the data indicates that the company experienced significant asset growth until early 2022 but faced considerable asset reductions afterward. Concurrently, debt levels escalated sharply in the latest quarters, contributing to a substantially higher debt-to-assets ratio. This pattern suggests a shift toward greater financial leverage and potential increased risk exposure in recent periods.

The analysis of the quarterly financial data reveals several notable trends in the company's financial position over the given periods.

Total Debt (including operating lease liability)

The total debt levels showed moderate fluctuation between June 2019 and March 2022, maintaining a range roughly between 140,000 and 250,000 thousand US dollars. However, starting from June 2022, there was a significant and sharp increase in total debt, rising from approximately 3,682,100 thousand US dollars and maintaining levels around the 3.4 to 4.1 million mark through March 2025. This dramatic escalation suggests a substantial change in the company's financing strategy or capital structure during this later period.

Total Assets

Total assets demonstrated a generally positive trend from June 2019 through March 2022, increasing from approximately 4.37 million thousand US dollars to a peak of about 17.7 million thousand US dollars. Following this peak, a downward trend occurred, with total assets decreasing steadily to around 9.18 million thousand US dollars by March 2025. This decline in assets coincides with the period of sharply increased debt, indicating potential asset disposals or revaluation alongside increased leverage.

Debt to Assets Ratio (including operating lease liability)

The debt-to-assets ratio remained low and relatively stable from June 2019 to March 2022, fluctuating around 0.03 to 0.04. This indicates low leverage during that period. Starting from June 2022, the ratio increased markedly, moving from approximately 0.21 up to 0.45 by March 2025. This substantial rise reflects the combined effect of rising debt and falling asset values, indicating that the company assumed significantly higher financial risk and leverage in the latter periods.

In summary, the initial period up to early 2022 was characterized by stable and low leverage with growing assets and manageable debt levels. Post mid-2022, there was a pronounced shift: total debt surged dramatically, assets diminished, and leverage ratios escalated sharply. This pattern suggests a strategic or operational transition affecting the company’s balance sheet composition, resulting in a higher risk profile due to increased indebtedness relative to asset base.

The financial data over multiple quarters indicates notable variations in total assets, stockholders' equity, and financial leverage, reflecting the company's evolving financial structure during the period analyzed.

Total Assets

Total assets initially show a gradual growth trajectory from approximately $4.37 billion in mid-2019, reaching a peak near $17.7 billion by mid-2022. This upward trend signifies a period of asset accumulation or acquisition. Following this peak, there is a consistent decline in assets, dropping to roughly $9.18 billion by the first quarter of 2025. The sharp decrease after mid-2022 suggests major asset disposals, write-downs, or restructuring initiatives that materially reduced the asset base.

Total Stockholders’ Equity

Stockholders' equity similarly increased from about $2.09 billion in June 2019 to a high of approximately $9.66 billion in June 2022, mirroring the asset growth pattern and indicating enhanced capital or retained earnings during this period. However, after mid-2022, equity values declined steadily, reaching around $2.14 billion in the first quarter of 2025. This decline is consistent with the asset contraction and might indicate losses, dividend payments exceeding earnings, share buybacks, or other equity reductions impacting the company's net worth.

Financial Leverage

The financial leverage ratio decreased from 2.09 in June 2019 to a low of about 1.72 in March 2022, suggesting a reduction in the proportion of debt relative to equity during this time frame, which may imply a strengthening of the equity base or deleveraging efforts. After March 2022, however, leverage ratios escalated noticeably, reaching an elevated value of 4.29 by March 2025. This sharp increase in leverage indicates a significant reliance on debt financing relative to equity, likely driven by the rapid equity contraction in combination with the decreasing assets.

In summary, the data depicts an expansion phase through early 2022 characterized by asset and equity growth and moderated leverage, followed by a contraction phase where both assets and equity decline substantially while financial leverage spikes. This pattern may reflect strategic shifts, financial stress, or market conditions influencing the company’s capital structure and risk profile in the later periods.