Take-Two Interactive Software Inc (TTWO)

Return on assets (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
Net income (ttm)	US$ in thousands	-4,478,900	-3,655,700	-3,622,100	-3,800,200	-3,744,200	-1,451,500	-1,513,300	-1,226,700	-1,124,700	-403,428	-105,531	161,766	418,022	525,862	563,613	652,637	588,886	492,796	474,190	446,684
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
ROA		-48.79%	-28.83%	-27.70%	-29.36%	-30.65%	-9.74%	-9.95%	-7.90%	-7.09%	-2.39%	-0.60%	0.91%	6.39%	8.27%	8.52%	10.34%	9.77%	8.26%	8.13%	8.32%

March 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $-4,478,900K ÷ $9,180,700K
= -48.79%

Take-Two Interactive Software Inc's return on assets (ROA) has shown a declining trend over the quarters, starting at 8.32% in June 2020 and reaching its peak at 10.34% in June 2021. However, the ROA experienced a significant drop in the subsequent quarters, falling to -48.79% by March 2025. This indicates that the company's ability to generate profits from its assets has weakened considerably.

The decreasing ROA suggests that Take-Two Interactive Software Inc may be facing challenges in effectively utilizing its assets to generate earnings. It could be a sign of inefficiencies in asset management or declining profitability relative to the size of the company's asset base.

The negative ROA figures in the later quarters indicate that the company's asset base is not generating sufficient income to cover its operating expenses and overall financial obligations. This can be a concerning indicator for investors and stakeholders, pointing to potential financial distress or operational difficulties within the company.

Overall, the downward trend in ROA for Take-Two Interactive Software Inc raises questions about its operational performance and financial health, highlighting the need for management to closely monitor and address the factors impacting asset productivity and profitability.