Take-Two Interactive Software Inc (TTWO)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.91% | 42.72% | 56.32% | 54.53% | 50.14% |
| Operating profit margin | -67.12% | -21.78% | 13.54% | 18.68% | 13.79% |
| Pretax margin | -69.22% | -25.01% | 13.31% | 20.11% | 14.86% |
| Net profit margin | -69.99% | -21.02% | 11.95% | 17.48% | 13.11% |
Take-Two Interactive Software Inc's profitability ratios show fluctuations over the past five years. The gross profit margin has generally decreased from 56.32% in 2022 to 41.91% in 2024, indicating a decline in the company's efficiency in generating profits from its revenue after accounting for the cost of goods sold.
The operating profit margin has been volatile, with a significant decline to -67.12% in 2024, suggesting that the company's operating expenses outweighed its operating income, leading to significant losses at the operating level. Similarly, the pretax margin and net profit margin also exhibited negative trends, with both ratios turning negative in 2024, indicating a scenario where the company's operating expenses and taxes eroded its earnings to the point of reporting losses.
Overall, the downward trend in profitability ratios for Take-Two Interactive Software Inc raises concerns about the company's ability to control costs and maintain profitable operations. Further analysis of the company's financial and operational strategies may be necessary to address these profitability challenges and improve overall financial performance.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -29.39% | -7.35% | 7.23% | 10.44% | 8.59% |
| Return on assets (ROA) | -30.65% | -7.09% | 6.39% | 9.77% | 8.17% |
| Return on total capital | -41.15% | -10.81% | 12.43% | 18.89% | 16.75% |
| Return on equity (ROE) | -66.06% | -12.44% | 10.97% | 17.67% | 15.93% |
The profitability ratios of Take-Two Interactive Software Inc have experienced fluctuations over the past five years. The Operating Return on Assets (Operating ROA) shows a declining trend, starting at a positive 8.59% in 2020 and decreasing to a negative 29.39% in 2024. This indicates a decrease in the company's ability to generate operating profits from its assets.
Similarly, the Return on Assets (ROA) and Return on Total Capital ratios also show a downward trend over the years, with both ratios turning negative in 2024. The ROA decreased from 8.17% in 2020 to -30.65% in 2024, while the Return on Total Capital ratio decreased from 16.75% in 2020 to -41.15% in 2024. These negative values suggest that the company is not efficiently utilizing its assets and capital to generate profits.
Furthermore, the Return on Equity (ROE) also demonstrates a deteriorating trend, with a negative ROE of -66.06% in 2024 compared to a positive 15.93% in 2020. This indicates a significant decrease in the company's ability to generate profits for its shareholders.
Overall, the downward trend in profitability ratios over the years suggests potential challenges in operational efficiency and financial performance for Take-Two Interactive Software Inc, which may require further analysis to identify underlying causes and strategies for improvement.