Take-Two Interactive Software Inc (TTWO)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands -4,422,900 -3,249,600 -3,250,100 -3,033,400 -3,049,400 -1,117,900 -1,162,000 -1,328,700 -1,162,600 -335,258 3,317 279,264 489,708 617,544 587,881 642,677 540,299 406,855 459,619 466,950
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 2,137,700 5,701,900 5,798,500 5,991,500 5,667,900 8,508,600 8,430,100 8,940,200 9,042,500 9,550,400 9,433,500 9,662,300 3,809,660 3,665,740 3,469,670 3,618,930 3,331,890 3,155,290 2,901,280 2,651,030
Return on total capital -206.90% -56.99% -56.05% -50.63% -53.80% -13.14% -13.78% -14.86% -12.86% -3.51% 0.04% 2.89% 12.85% 16.85% 16.94% 17.76% 16.22% 12.89% 15.84% 17.61%

March 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-4,422,900K ÷ ($—K + $2,137,700K)
= -206.90%

Take-Two Interactive Software Inc's return on total capital has shown fluctuations over the past few years. From June 30, 2020, to June 30, 2021, the return on total capital ranged from 15.84% to 17.76%, indicating relatively stable and healthy performance. However, a significant drop was observed in the subsequent periods, with the return on total capital declining to 0.04% as of September 30, 2022, and turning negative in the following quarters.

The decreasing trend continued, with return on total capital plummeting to -206.90% by March 31, 2025, reflecting a substantial deterioration in the company's capital efficiency. These negative values suggest that Take-Two Interactive Software Inc may be facing challenges in generating returns in excess of the capital invested, signaling potential operational or financial issues that require attention and strategic management.