Take-Two Interactive Software Inc (TTWO)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 54.36% | 50.06% | 42.72% | 56.19% | 54.49% |
| Operating profit margin | -77.94% | -67.12% | -21.20% | 13.51% | 18.66% |
| Pretax margin | -79.72% | -69.22% | -25.01% | 13.28% | 20.10% |
| Net profit margin | -79.50% | -69.99% | -21.02% | 11.93% | 17.46% |
Take-Two Interactive Software Inc's profitability ratios have shown a mixed performance over the past five years. The gross profit margin, a measure of a company's profitability after accounting for the cost of goods sold, improved from 54.49% in March 2021 to 56.19% in March 2022 before declining to 41.91% by March 2024, then bouncing back to 54.36% by March 2025.
However, the operating profit margin, which indicates the company's ability to generate profit from its core operations, declined significantly from 18.66% in March 2021 to -77.94% in March 2025. This suggests that Take-Two Interactive faced challenges in controlling operating expenses and maintaining profitability in recent years.
Similarly, the pretax margin, a measure of how well a company controls its operating expenses in relation to its total revenue, deteriorated from 20.10% in March 2021 to -79.72% in March 2025. This indicates that the company's pre-tax profitability has declined sharply over the five-year period.
The net profit margin, which represents the percentage of revenue that translates into profit after all expenses have been deducted, followed a similar trend, dropping from 17.46% in March 2021 to -79.50% in March 2025. This indicates that Take-Two Interactive's bottom-line profitability has been significantly impacted by various factors such as rising costs, decreasing revenues, or other operational challenges.
In summary, while Take-Two Interactive Software Inc's gross profit margin showed some resilience, the company experienced significant declines in operating, pretax, and net profit margins over the past five years, signaling challenges in generating profits from its core operations and controlling overall expenses.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -47.83% | -29.39% | -7.15% | 7.23% | 10.44% |
| Return on assets (ROA) | -48.79% | -30.65% | -7.09% | 6.39% | 9.77% |
| Return on total capital | -210.10% | -23.63% | -13.36% | 12.71% | 20.53% |
| Return on equity (ROE) | -209.52% | -66.06% | -12.44% | 10.97% | 17.67% |
Take-Two Interactive Software Inc's profitability ratios have shown fluctuating performance over the years.
- The Operating Return on Assets (Operating ROA) ratio decreased from 10.44% in March 2021 to 7.23% in March 2022 and further dropped to -7.15% in March 2023. This implies that the company's operating income generated from its assets has declined, indicating potential operational inefficiencies during those periods.
- The Return on Assets (ROA) ratio followed a similar trend, decreasing from 9.77% in March 2021 to 6.39% in March 2022 and turning negative at -7.09% in March 2023. This suggests that the company's overall profitability in relation to its total assets worsened over the years.
- The Return on Total Capital ratio dropped significantly from 20.53% in March 2021 to 12.71% in March 2022, and then turned negative at -13.36% in March 2023, indicating a decline in the company's ability to generate returns from its total invested capital.
- The Return on Equity (ROE) ratio also exhibited a downward trend, decreasing from 17.67% in March 2021 to 10.97% in March 2022 and reaching -12.44% in March 2023. This reflects a decreasing trend in the company's profitability concerning its shareholders' equity.
Overall, the declining profitability ratios suggest that Take-Two Interactive Software Inc faced challenges in generating profits relative to its assets, capital, and equity over the specified period. The negative ratios indicate that the company experienced losses during those years, highlighting the importance of addressing operational and financial performance issues to improve profitability.