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TTWO (Take-Two Interactive Software) Degree of Operating Leverage : 4.02 (As of Mar. 2025)


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What is Take-Two Interactive Software Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Take-Two Interactive Software's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 4.02. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Take-Two Interactive Software's Degree of Operating Leverage or its related term are showing as below:

TTWO's Degree of Operating Leverage is ranked worse than
72.81% of 548 companies
in the Interactive Media industry
Industry Median: 1 vs TTWO: 4.02

Take-Two Interactive Software Degree of Operating Leverage Historical Data

The historical data trend for Take-Two Interactive Software's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Take-Two Interactive Software Degree of Operating Leverage Chart

Take-Two Interactive Software Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.27 -7.37 -6.53 -35,361.37 4.02

Take-Two Interactive Software Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -35,361.37 -74.63 313.84 114.47 4.02

Competitive Comparison of Take-Two Interactive Software's Degree of Operating Leverage

For the Electronic Gaming & Multimedia subindustry, Take-Two Interactive Software's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Take-Two Interactive Software's Degree of Operating Leverage Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Take-Two Interactive Software's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Take-Two Interactive Software's Degree of Operating Leverage falls into.


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Take-Two Interactive Software Degree of Operating Leverage Calculation

Take-Two Interactive Software's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -4322 (Mar. 2025) / -3562.2 (Mar. 2024) - 1 )/( 5633.6 (Mar. 2025) / 5349.6 (Mar. 2024) - 1 )
=0.2133/0.0531
=4.02***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Take-Two Interactive Software  (NAS:TTWO) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Take-Two Interactive Software Degree of Operating Leverage Related Terms

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Take-Two Interactive Software Business Description

Address
110 West 44th Street, New York, NY, USA, 10036
Take-Two is one of the largest global developers and publishers of video games, with labels including Rockstar, 2K, and Zynga. Grand Theft Auto is the firm's biggest franchise, accounting for about 30% of total sales for the past decade. NBA 2K is the industry's dominant basketball video game, with Take-Two releasing a new version annually. Other notable franchises include Red Dead Redemption, Borderlands, and Civilization. Typically, more than three quarters of the firm's sales are from in-game spending, with the remainder coming from initial game sales. Since acquiring Zynga in 2022, mobile makes up about half of total sales.
Executives
Michael Sheresky director C/O WILLIAM MORRIS AGENCY, 1 WILLIAM MORRIS PLACE, BEVERLY HILLS CA 90212
Daniel P Emerson officer: General Counsel 622 BROADWAY, NEW YORK NY 10012
Lainie Goldstein officer: Chief Financial Officer C/O TAKE-TWO INTERACTIVE SOFTWARE, INC., 622 BROADWAY, NEW YORK NY 10012
Karl Slatoff officer: Executive Vice President C/O ZELNICKMEDIA CORPORATION, 19 WEST 44TH STREET, 18TH FLOOR, NEW YORK NY 10036
Strauss Zelnick director, officer: Executive Chairman C/O ZELNICKMEDIA, 650 FIFTH AVE 31ST FLOOR, NEW YORK NY 10019
Laverne Evans Srinivasan director C/O TAKE-TWO INTERACTIVE SOFTWARE, INC., 622 BROADWAY, NEW YORK NY 10012
Jon J Moses director C/O UGO NETWORKS, INC., 670 BROADWAY, NEW YORK NY 10012
William B Gordon director
Ellen F Siminoff director 555 ELLIS STREET, MOUNTAIN VIEW CA 94043
Roland A Hernandez director 300 NORTH SAN RAFAEL AVE, PASADENA CA 91105
Paul E Viera director C/O TAKE-TWO INTERACTIVE SOFTWARE, INC., 110 WEST 44TH STREET, NEW YORK NY 10036
Michael Dornemann director 4950 COMMUNICATION AVENUE, SUITE 300, BOCA RATON FL 33431
Seth D Krauss officer: Exec VP and General Counsel C/O TAKE-TWO INTERACTIVE SOFTWARE, INC., 222 BROADWAY, NEW YORK NY 10012
Susan Tolson director C/O TAKE-TWO INTERACTIVE SOFTWARE, INC., 622 BROADWAY, NEW YORK NY 10019
Carl C Icahn 10 percent owner C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160