Take-Two Interactive Software Inc (TTWO)

Financial leverage 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
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
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
Financial leverage ratio		2.16	1.75	1.80	1.74	1.75	1.77	1.85	1.84	1.72	1.73	1.91	1.74	1.81	1.89	2.01	2.03	1.95	2.03	2.21	2.09

March 31, 2024 calculation

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

The financial leverage ratio of Take-Two Interactive Software Inc has fluctuated over the past few years, ranging from a low of 1.72 to a high of 2.21. The ratio indicates that the company has been using debt to finance a portion of its operations and investments.

A higher financial leverage ratio suggests that the company is relying more on debt financing, which can magnify returns but also increase financial risk. In contrast, a lower ratio indicates a lower level of debt relative to equity, which may imply more conservative financial management.

The upward and downward movements in the financial leverage ratio over time may be due to changes in the company's capital structure, such as taking on or paying off debt, issuing new equity, or repurchasing shares. It is essential for investors and analysts to monitor these changes to assess the company's risk profile and financial health.