Take-Two Interactive Software Inc (TTWO)
Solvency ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.25 | 0.11 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.35 | 0.16 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.54 | 0.19 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.16 | 1.75 | 1.72 | 1.81 | 1.95 |
Take-Two Interactive Software Inc's solvency ratios indicate that the company has been progressively increasing its leverage over the past five years. The debt-to-assets ratio shows a significant increase from 0.00 in 2020 to 0.25 in 2024, suggesting that a quarter of the company's assets are financed by debt. Similarly, the debt-to-capital ratio has also increased from 0.00 in 2020 to 0.35 in 2024, indicating that 35% of the company's capital structure is debt-funded.
The debt-to-equity ratio has shown a sharp rise from 0.00 in 2020 to 0.54 in 2024, suggesting that more than half of the company's equity is sourced from debt. This indicates a higher level of financial risk as the company relies more on debt to finance its operations and growth.
The financial leverage ratio has also increased over the five-year period, reaching 2.16 in 2024 from 1.95 in 2020. This indicates that the company's total assets are leveraged by a factor of 2.16 times the equity capital, highlighting an increasing level of financial leverage.
Overall, the solvency ratios of Take-Two Interactive Software Inc reflect a trend of increasing reliance on debt financing over the years, which may indicate a higher level of financial risk and potential impact on the company's financial stability and flexibility in the long run.
Coverage ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -27.20 | -10.73 | 72.58 | 101.40 | 11.04 |
The interest coverage ratio of Take-Two Interactive Software Inc has shown significant fluctuations over the past five years. In 2024, the ratio was -27.20, indicating a substantial decrease from the previous year. This means that the company's operating income was not sufficient to cover its interest expenses in 2024, raising concerns about its ability to meet its debt obligations.
Compared to 2023, where the interest coverage ratio was -10.73, the situation worsened significantly in 2024. This suggests that the company's financial health deteriorated further, as it faced greater challenges in meeting its interest payments.
In 2022, the interest coverage ratio was 72.58, reflecting a strong ability to cover interest expenses with operating income. This improved performance from the previous year's ratio of 101.40 indicates a healthy financial position in 2022, with ample operating income to comfortably cover interest costs.
The interest coverage ratio sharply declined in 2021 to 11.04, signaling a significant decrease in the company's ability to cover interest expenses compared to the previous year. This decline may be a cause for concern, as it indicates a potential strain on the company's financial resources to meet its interest obligations.
Overall, the fluctuating trend in Take-Two Interactive Software Inc's interest coverage ratio over the past five years highlights the importance of monitoring the company's financial health and its ability to manage debt efficiently.