Take-Two Interactive Software Inc (TTWO)

Debt-to-assets ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Long-term debt	US$ in thousands	3,058,300	1,733,000	0	—	—
Total assets	US$ in thousands	12,216,900	15,862,100	6,546,300	6,028,220	4,948,830
Debt-to-assets ratio		0.25	0.11	0.00	0.00	0.00

March 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,058,300K ÷ $12,216,900K
= 0.25

The debt-to-assets ratio of Take-Two Interactive Software Inc has shown a significant increase over the past five years. In the most recent period as of March 31, 2024, the ratio stands at 0.25, indicating that the company's debt represents 25% of its total assets. This suggests that Take-Two Interactive Software Inc has increased its reliance on debt financing relative to its assets compared to the previous years.

In March 31, 2023, the debt-to-assets ratio was 0.11, signifying that the company's debt made up 11% of its total assets, showing a considerable jump from the zero levels in the preceding years (2019, 2020, and 2021). This escalation in the debt-to-assets ratio could imply a strategic shift towards leveraging debt as a source of capital for the company's operations, investments, or acquisitions.

It is essential to note that while some level of debt can be healthy for a company by allowing it to maximize leverage and potentially generate higher returns for shareholders, excessive debt levels can increase financial risk and impact the company's ability to meet its obligations. Therefore, investors and stakeholders should continue monitoring Take-Two Interactive Software Inc's debt-to-assets ratio to assess its financial health and risk profile.