Take-Two Interactive Software Inc (TTWO)

Return on total capital

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-3,590,600	-1,579,900	-1,623,300	-1,332,100	-1,165,200	-333,900	-6,900	265,700	473,600	600,533	622,490	717,757	629,400	495,451	496,227	455,680	425,267	361,444	236,390	187,556
Long-term debt	US$ in thousands	3,058,300	2,708,200	2,707,100	2,704,700	1,733,000	—	—	—	0	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	5,667,900	8,508,600	8,430,100	8,940,200	9,042,500	9,550,400	9,433,500	9,662,300	3,809,700	3,665,740	3,469,670	3,618,930	3,331,890	3,155,290	2,901,280	2,651,030	2,539,240	2,402,040	2,181,760	2,086,330
Return on total capital		-41.15%	-14.09%	-14.58%	-11.44%	-10.81%	-3.50%	-0.07%	2.75%	12.43%	16.38%	17.94%	19.83%	18.89%	15.70%	17.10%	17.19%	16.75%	15.05%	10.83%	8.99%

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (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 fluctuations over the given periods. The ratio has been negative for the most recent quarter at -41.15%, indicating that the company's earnings were insufficient to cover the capital invested. This is a significant decline from the previous quarter's -14.09%.

Looking further back, the trend shows a gradual decrease in return on total capital from positive figures in the latter half of 2021 to negative figures in 2024. The company experienced a notable peak of 19.83% in the quarter ended June 30, 2021, suggesting a strong performance in generating profits relative to the total capital invested.

However, the subsequent quarters have seen a decline in the return on total capital, indicating challenges in optimizing capital efficiency and profitability. It is important for Take-Two Interactive Software Inc to focus on improving its performance metrics to enhance returns for its investors over the long term.