Take-Two Interactive Software Inc (TTWO)

Return on total capital

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	-3,590,600	-1,165,200	473,600	629,400	425,267
Long-term debt	US$ in thousands	3,058,300	1,733,000	0	—	—
Total stockholders’ equity	US$ in thousands	5,667,900	9,042,500	3,809,700	3,331,890	2,539,240
Return on total capital		-41.15%	-10.81%	12.43%	18.89%	16.75%

March 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-3,590,600K ÷ ($3,058,300K + $5,667,900K)
= -41.15%

Take-Two Interactive Software Inc's return on total capital has shown significant fluctuations over the past five years. The return on total capital was 16.75% in the fiscal year ending March 31, 2020, which increased to 18.89% in the following year, indicating an improvement in the company's ability to generate returns from its total capital. However, in the subsequent years, there was a downward trend in the return on total capital, with the figure dropping to 12.43% in 2022 and further to -10.81% in 2023, reflecting a decline in the company's efficiency in utilizing its total capital.

The most recent figure for the fiscal year ending March 31, 2024, shows a return on total capital of -41.15%, indicating a significant negative return from the company's total capital. This sharp decline may raise concerns about Take-Two Interactive Software Inc's operational efficiency and effectiveness in generating profits relative to the total capital employed.

Overall, the fluctuating trend in the return on total capital for Take-Two Interactive Software Inc suggests a need for further analysis to understand the factors driving these fluctuations and to implement strategies to improve the company's performance in utilizing its total capital effectively.