Take-Two Interactive Software Inc (TTWO)

Operating return on assets (Operating ROA)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Operating income	US$ in thousands	-3,590,600	-1,165,200	473,600	629,400	425,267
Total assets	US$ in thousands	12,216,900	15,862,100	6,546,300	6,028,220	4,948,830
Operating ROA		-29.39%	-7.35%	7.23%	10.44%	8.59%

March 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-3,590,600K ÷ $12,216,900K
= -29.39%

Take-Two Interactive Software Inc's operating return on assets (operating ROA) has shown a downward trend over the five-year period from March 31, 2020, to March 31, 2024. The operating ROA was 8.59% in 2020, which then increased to 10.44% in 2021, indicating improved operational efficiency and effectiveness in generating income from its assets. However, there was a noticeable decline in operating ROA to 7.23% in 2022, followed by further substantial decreases to -7.35% in 2023 and -29.39% in 2024.

The negative operating ROA values in 2023 and 2024 suggest that the company's operating income generated from its assets was not sufficient to cover the operating expenses, resulting in operating losses. This could be a red flag for investors and stakeholders, indicating potential operational inefficiencies, cost overruns, or other issues impacting the company's profitability.

Further analysis would be necessary to understand the specific reasons behind the significant decline in operating ROA in the past two years and to assess the company's ability to improve its operational performance and return to positive profitability levels in the future.