Take-Two Interactive Software Inc (TTWO)

Return on equity (ROE)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Net income	US$ in thousands	-3,744,200	-1,124,700	418,000	588,900	404,459
Total stockholders’ equity	US$ in thousands	5,667,900	9,042,500	3,809,700	3,331,890	2,539,240
ROE		-66.06%	-12.44%	10.97%	17.67%	15.93%

March 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-3,744,200K ÷ $5,667,900K
= -66.06%

The Return on Equity (ROE) for Take-Two Interactive Software Inc has varied significantly over the past five years. In the latest fiscal year ending March 31, 2024, the ROE was notably negative at -66.06%, indicating that the company generated a net income loss relative to shareholder equity. This significant decrease from the prior year's -12.44% ROE suggests a deteriorating profitability situation.

Looking back, the ROE stood at 10.97% in fiscal year 2022, indicating that the company generated a return of approximately 10.97% on shareholder equity. The ROE then saw an increase in fiscal year 2021 to 17.67%, suggesting an improvement in profitability compared to the previous year. The company also recorded a ROE of 15.93% in fiscal year 2020, which indicates a solid return on equity.

The negative ROE in 2024 raises concerns about the company's ability to generate profits relative to the equity provided by shareholders. It is important for investors and stakeholders to further investigate the reasons behind this negative trend in ROE to assess the company's financial health and sustainability. It is advisable for the company to focus on improving profitability, managing costs, and optimizing the utilization of shareholder equity to enhance its ROE in the future.