Take-Two Interactive Software Inc (TTWO)
Fixed asset turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,349,600 | 5,349,900 | 3,496,870 | 3,369,920 | 3,084,420 |
| Property, plant and equipment | US$ in thousands | 411,100 | 402,800 | 242,000 | 149,364 | 131,888 |
| Fixed asset turnover | 13.01 | 13.28 | 14.45 | 22.56 | 23.39 |
March 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,349,600K ÷ $411,100K
= 13.01
The fixed asset turnover ratio for Take-Two Interactive Software Inc has shown a declining trend over the past five years. The ratio decreased from 23.39 in 2020 to 13.01 in 2024. This indicates that the company generated $13.01 in revenue for every dollar invested in fixed assets in 2024, compared to $23.39 in 2020.
A decreasing fixed asset turnover ratio may suggest that the company is becoming less efficient in utilizing its fixed assets to generate sales. This could be due to various reasons, such as slower sales growth relative to the growth in fixed assets, inefficiencies in asset utilization, or changes in the company's business model.
It is important for Take-Two Interactive Software Inc to closely monitor its fixed asset turnover ratio and assess the underlying factors affecting this trend. By improving asset utilization and operational efficiency, the company may be able to enhance its overall profitability and financial performance.
Peer comparison
Mar 31, 2024