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.
Peer comparison
Mar 31, 2025