Take-Two Interactive Software Inc (TTWO)

Financial leverage ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Total assets	US$ in thousands	12,216,900	15,862,100	6,546,300	6,028,220	4,948,830
Total stockholders’ equity	US$ in thousands	5,667,900	9,042,500	3,809,700	3,331,890	2,539,240
Financial leverage ratio		2.16	1.75	1.72	1.81	1.95

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,216,900K ÷ $5,667,900K
= 2.16

Take-Two Interactive Software Inc's financial leverage ratio has shown fluctuation over the past five years. The ratio increased from 1.95 in 2020 to 2.16 in 2024, indicating a higher degree of financial leverage in the most recent year. This suggests that the company has been relying more on debt to finance its operations and growth.

While a higher leverage ratio can amplify returns for shareholders during favorable economic conditions, it also exposes the company to higher financial risk, especially in times of economic downturn or rising interest rates. It is important for Take-Two Interactive Software Inc to carefully manage its debt levels to ensure sustainable growth and financial stability.

Overall, the trend in the financial leverage ratio for Take-Two Interactive Software Inc points towards an increasing reliance on debt financing, which requires thorough monitoring and strategic decision-making to maintain a healthy balance between debt and equity in the company's capital structure.