Take-Two Interactive Software Inc (TTWO)

Debt-to-assets ratio

		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
Long-term debt	US$ in thousands	3,058,300	2,708,200	2,707,100	2,704,700	1,733,000	—	—	—	0	—	—	—	—	—	—	—	—	—	—	—
Total assets	US$ in thousands	12,216,900	14,895,700	15,207,400	15,525,300	15,862,100	16,881,400	17,492,900	17,744,900	6,546,300	6,357,950	6,619,030	6,314,260	6,028,220	5,966,100	5,836,150	5,369,240	4,948,830	4,879,630	4,815,110	4,366,220
Debt-to-assets ratio		0.25	0.18	0.18	0.17	0.11	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	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 consistent trend of increase over the past quarters, indicating a higher level of reliance on debt to finance its operations and assets. The ratio increased from 0.11 in March 2023 to 0.25 in March 2024, suggesting a significant rise in the proportion of debt in relation to the total assets held by the company.

This increasing trend in the debt-to-assets ratio may raise concerns among investors and creditors about the company's financial risk and leverage position. A higher debt-to-assets ratio implies higher financial leverage, which can amplify returns in a favorable market environment but also increase the risks associated with fluctuations in profitability and cash flows.

It would be important for Take-Two Interactive Software Inc to closely monitor and manage its debt levels to ensure that it remains within manageable limits and does not jeopardize the company's overall financial stability and long-term growth prospects. Maintaining a balance between debt and equity financing is crucial for sustainable business operations and risk management in the dynamic and competitive gaming industry.