Take-Two Interactive Software Inc (TTWO)

Operating return on assets (Operating ROA)

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Operating income (ttm) US$ in thousands -4,391,100 -3,327,300 -3,324,700 -3,571,200 -3,590,600 -1,585,500 -1,630,000 -1,340,700 -1,134,200 -297,336 30,893 305,444 473,718 600,671 622,499 717,715 645,820 511,887 512,663 472,116
Total assets US$ in thousands 9,180,700 12,679,900 13,075,300 12,944,600 12,216,900 14,895,700 15,207,400 15,525,300 15,862,100 16,881,400 17,492,900 17,744,900 6,546,220 6,357,950 6,619,030 6,314,260 6,028,220 5,966,100 5,836,150 5,369,240
Operating ROA -47.83% -26.24% -25.43% -27.59% -29.39% -10.64% -10.72% -8.64% -7.15% -1.76% 0.18% 1.72% 7.24% 9.45% 9.40% 11.37% 10.71% 8.58% 8.78% 8.79%

March 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-4,391,100K ÷ $9,180,700K
= -47.83%

Take-Two Interactive Software Inc's operating return on assets (operating ROA) has shown fluctuations over the reporting periods provided. The operating ROA started at a relatively healthy level of 8.79% as of June 30, 2020, and remained stable around 8-9% until March 31, 2021. During this period, the company was efficiently generating earnings from its assets.

However, there was a notable increase in operating ROA to 11.37% as of June 30, 2021, indicating improved asset utilization and profitability. This peak was followed by a slight decrease to 9.40% by September 30, 2021, and the operating ROA continued to decline gradually over the following periods.

By March 31, 2025, the operating ROA had sharply decreased to -47.83%, signifying a substantial decline in the company's ability to generate earnings from its assets. This negative trend raises concerns about the company's operational efficiency and profitability.

Overall, the analysis suggests that Take-Two Interactive Software Inc experienced a period of strong operational performance followed by a significant decline in profitability as reflected in its operating ROA figures. Monitoring and addressing this downward trend in operating ROA will be crucial for the company's financial health and sustainability.