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Take-Two Interactive Software (Take-Two Interactive Software) Gross Margin % : 49.63% (As of Dec. 2023)


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What is Take-Two Interactive Software Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Take-Two Interactive Software's Gross Profit for the three months ended in Dec. 2023 was $678 Mil. Take-Two Interactive Software's Revenue for the three months ended in Dec. 2023 was $1,366 Mil. Therefore, Take-Two Interactive Software's Gross Margin % for the quarter that ended in Dec. 2023 was 49.63%.


The historical rank and industry rank for Take-Two Interactive Software's Gross Margin % or its related term are showing as below:

TTWO' s Gross Margin % Range Over the Past 10 Years
Min: 26.6   Med: 42.81   Max: 56.19
Current: 36.99


During the past 13 years, the highest Gross Margin % of Take-Two Interactive Software was 56.19%. The lowest was 26.60%. And the median was 42.81%.

TTWO's Gross Margin % is ranked worse than
75.67% of 522 companies
in the Interactive Media industry
Industry Median: 60.98 vs TTWO: 36.99

Take-Two Interactive Software had a gross margin of 49.63% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Take-Two Interactive Software was 0.30% per year.


Take-Two Interactive Software Gross Margin % Historical Data

The historical data trend for Take-Two Interactive Software's Gross Margin % 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 Gross Margin % Chart

Take-Two Interactive Software Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 42.90 50.07 54.49 56.19 42.72

Take-Two Interactive Software Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % 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 50.85 15.43 52.87 31.97 49.63

Competitive Comparison of Take-Two Interactive Software's Gross Margin %

For the Electronic Gaming & Multimedia subindustry, Take-Two Interactive Software's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Take-Two Interactive Software's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Take-Two Interactive Software's Gross Margin % falls into.



Take-Two Interactive Software Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Take-Two Interactive Software's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=2285.3 / 5349.9
=(Revenue - Cost of Goods Sold) / Revenue
=(5349.9 - 3064.6) / 5349.9
=42.72 %

Take-Two Interactive Software's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=678.1 / 1366.3
=(Revenue - Cost of Goods Sold) / Revenue
=(1366.3 - 688.2) / 1366.3
=49.63 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Take-Two Interactive Software  (NAS:TTWO) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Take-Two Interactive Software had a gross margin of 49.63% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Take-Two Interactive Software Gross Margin % Related Terms

Thank you for viewing the detailed overview of Take-Two Interactive Software's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Take-Two Interactive Software (Take-Two Interactive Software) Business Description

Address
110 West 44th Street, New York, NY, USA, 10036
Found in 1993, Take-Two consists of three wholly owned labels, Rockstar Games, 2K, and Zynga. The firm is one of the world's largest independent video game publishers on consoles, PCs, smartphones, and tablets. Take-Two's franchise portfolio is headlined by "Grand Theft Auto" (345 million units sold) and contains other well-known titles such as "NBA 2K," "Civilization," "Borderlands," "Bioshock," and "Xcom." Zynga mobile titles include "Farmville," "Empires & Puzzles," and "CSR Racing.".
Executives
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
Laverne Evans Srinivasan director C/O TAKE-TWO INTERACTIVE SOFTWARE, INC., 622 BROADWAY, NEW YORK NY 10012
Strauss Zelnick director, officer: Executive Chairman C/O ZELNICKMEDIA, 650 FIFTH AVE 31ST FLOOR, NEW YORK NY 10019
Michael Sheresky director C/O WILLIAM MORRIS AGENCY, 1 WILLIAM MORRIS PLACE, BEVERLY HILLS CA 90212
Karl Slatoff officer: Executive Vice President C/O ZELNICKMEDIA CORPORATION, 19 WEST 44TH STREET, 18TH FLOOR, NEW YORK NY 10036
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
Jon J Moses director C/O UGO NETWORKS, INC., 670 BROADWAY, NEW YORK NY 10012
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