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.