Take-Two Interactive Software Inc (TTWO)

Pretax margin

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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands -4,491,300 -3,434,000 -3,433,400 -3,686,100 -3,702,800 -1,688,800 -1,736,600 -1,460,700 -1,338,100 -485,659 -133,420 187,654 465,398 597,148 661,455 758,899 677,816 548,859 521,189 486,645
Revenue (ttm) US$ in thousands 5,633,600 5,450,500 5,457,000 5,403,100 5,349,600 5,396,400 5,437,900 5,532,200 5,349,900 4,833,704 4,329,156 3,793,854 3,504,800 3,414,227 3,371,864 3,354,808 3,372,772 3,293,882 3,363,122 3,379,821
Pretax margin -79.72% -63.00% -62.92% -68.22% -69.22% -31.29% -31.94% -26.40% -25.01% -10.05% -3.08% 4.95% 13.28% 17.49% 19.62% 22.62% 20.10% 16.66% 15.50% 14.40%

March 31, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-4,491,300K ÷ $5,633,600K
= -79.72%

Take-Two Interactive Software Inc's pretax margin shows a declining trend over the period from June 30, 2020, to March 31, 2025. The pretax margin started at 14.40% in June 2020, steadily increasing to a peak of 22.62% by June 30, 2021. However, from September 30, 2021, onwards, the pretax margin began to deteriorate significantly.

By March 31, 2025, the pretax margin had dropped to a concerning -79.72%, indicating that the company's profitability before taxes had turned into a substantial loss. This sharp decline in the pretax margin could be due to various factors like increased expenses, declining revenues, or ineffective cost management.

The negative pretax margin figures raise red flags regarding Take-Two Interactive Software Inc's financial performance and sustainability. It is essential for the company to address the underlying issues contributing to this downward trend to improve its profitability and financial health over the coming periods.