Take-Two Interactive Software Inc (TTWO)
Pretax margin
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -4,491,300 | -3,702,800 | -1,338,100 | 465,398 | 677,816 |
| Revenue | US$ in thousands | 5,633,600 | 5,349,600 | 5,349,900 | 3,504,800 | 3,372,770 |
| Pretax margin | -79.72% | -69.22% | -25.01% | 13.28% | 20.10% |
March 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $-4,491,300K ÷ $5,633,600K
= -79.72%
The pretax margin for Take-Two Interactive Software Inc has shown declining trends over the years based on the provided data. As of March 31, 2021, the pretax margin was at a relatively healthy level of 20.10%. However, there was a notable decrease in the pretax margin to 13.28% by March 31, 2022.
The trend worsened significantly in the subsequent years, with the pretax margin turning negative. By March 31, 2023, the pretax margin stood at -25.01%, indicating that the company's expenses exceeded its pre-tax income. This negative trend continued to deteriorate, with the pretax margin for March 31, 2024, and March 31, 2025, reporting -69.22% and -79.72%, respectively.
The consistent decline in pretax margin raises concerns about Take-Two Interactive Software Inc's profitability and operational efficiency. It suggests that the company may be facing challenges in controlling costs relative to its revenue generation, which can impact its overall financial health and sustainability. Investors and stakeholders may closely monitor the company's strategies to improve its cost structure and enhance profitability in the future.
Peer comparison
Mar 31, 2025