Take-Two Interactive Software Inc (TTWO)
Solvency ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.29 | 2.16 | 1.75 | 1.72 | 1.81 |
Take-Two Interactive Software Inc has consistently maintained a very strong solvency position, as indicated by the debt-to-assets, debt-to-capital, and debt-to-equity ratios all being at 0.00 for the years up to March 31, 2024. These ratios suggest that the company has no debt relative to its assets, capital, and equity during this period, indicating a low financial risk and strong financial stability.
However, it is important to note that the financial leverage ratio increased from 1.81 in 2021 to 2.16 in 2024. The higher financial leverage ratio in 2024 suggests that the company increased its reliance on debt to finance its operations, which could potentially indicate a higher level of financial risk.
In conclusion, while Take-Two Interactive Software Inc has historically demonstrated robust solvency metrics with minimal to no debt obligations, the increasing trend in the financial leverage ratio indicates a shift towards more leveraged financing in recent years, which investors and stakeholders may want to monitor closely for any potential impact on the company's financial health and risk profile.
Coverage ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | — | -9.53 | -5.93 | 19.72 | 110.20 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. In the case of Take-Two Interactive Software Inc, the trend in interest coverage over the years shows some fluctuations.
- As of March 31, 2021, the interest coverage ratio was strong at 110.20, indicating that the company's operating income was more than sufficient to cover its interest expenses.
- By March 31, 2022, the interest coverage ratio decreased significantly to 19.72. While still above 1, this reduction suggests a lower ability to cover interest costs from its operating income.
- The ratio turned negative by March 31, 2023, with a value of -5.93, indicating that the operating income was not enough to cover the interest expenses. This scenario raises concerns about the company's financial health and ability to meet debt obligations.
- The trend worsened in the following years, reaching -24.73 by March 31, 2024. This further highlights the deteriorating ability of Take-Two Interactive Software Inc to cover its interest payments.
The lack of data for March 31, 2025, prevents an assessment for that year. Overall, the declining trend in the interest coverage ratio from 2021 to 2024 raises red flags about the company's financial stability and ability to service its debt obligations with its operating income.