Take-Two Interactive Software Inc (TTWO)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	5,667,900	9,042,500	3,809,700	3,331,890	2,539,240
Debt-to-capital ratio		0.35	0.16	0.00	0.00	0.00

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,058,300K ÷ ($3,058,300K + $5,667,900K)
= 0.35

The debt-to-capital ratio of Take-Two Interactive Software Inc has shown a significant increase over the past five years. In March 2020, the company had no debt recorded in relation to its capital structure, indicating a conservative financial position with no debt obligations. However, starting from March 2021, the debt-to-capital ratio has been steadily increasing, reaching 0.35 by March 2024.

This progression suggests that Take-Two Interactive Software Inc has been taking on debt relative to its capital base to finance its operations or growth initiatives. A higher debt-to-capital ratio implies a higher reliance on debt financing, which can potentially lead to increased financial leverage and risk for the company.

It would be essential for stakeholders and investors to monitor the trend in the debt-to-capital ratio to assess the company's debt management strategy and overall financial health. Further analysis of the reasons behind the increase in the ratio and its implications on the company's future financial performance would be crucial for a more comprehensive evaluation of Take-Two Interactive Software Inc's capital structure.