Take-Two Interactive Software Inc (TTWO)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	5,667,900	8,508,600	8,430,100	8,940,200	9,042,500	9,550,400	9,433,500	9,662,300	3,809,700	3,665,740	3,469,670	3,618,930	3,331,890	3,155,290	2,901,280	2,651,030	2,539,240	2,402,040	2,181,760	2,086,330
Debt-to-capital ratio		0.35	0.24	0.24	0.23	0.16	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-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 from 0.00 in the fourth quarter of 2022 to 0.35 in the first quarter of 2024. This indicates that the company's reliance on debt to finance its operations and growth has also increased during this period. The steady rise in the debt-to-capital ratio over the past quarters suggests that Take-Two Interactive Software Inc has been taking on more debt relative to its total capital structure, which may indicate a higher financial risk.

It is important to monitor this trend closely as a higher debt-to-capital ratio can impact the company's financial stability and ability to meet its debt obligations. Management should assess the reasons behind this increase in the ratio and evaluate whether it aligns with the company's overall strategic objectives and financial health. Additionally, investors and stakeholders should pay attention to how the company plans to manage its debt levels going forward to ensure sustainable growth and long-term success.