Take-Two Interactive Software (WBO:TTWO) Beneish M-Score : -3.10 (As of Mar. 27, 2025)

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What is Take-Two Interactive Software Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.1 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Take-Two Interactive Software's Beneish M-Score or its related term are showing as below:

WBO:TTWO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.28 Med: -2.57 Max: 8.87
Current: -3.1

During the past 13 years, the highest Beneish M-Score of Take-Two Interactive Software was 8.87. The lowest was -3.28. And the median was -2.57.

Take-Two Interactive Software Beneish M-Score Historical Data

The historical data trend for Take-Two Interactive Software's Beneish M-Score 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.

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Take-Two Interactive Software Beneish M-Score Chart

Take-Two Interactive Software Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.42

-2.78

-2.01

-1.95

-3.13

Take-Two Interactive Software Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.70	-3.13	-3.03	-2.97	-3.10

Competitive Comparison of Take-Two Interactive Software's Beneish M-Score

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

For the Interactive Media industry and Communication Services sector, Take-Two Interactive Software's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Take-Two Interactive Software's Beneish M-Score falls into.

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Take-Two Interactive Software Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Take-Two Interactive Software for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0115

0.528 * 0.736

0.404 * 0.9358

0.892 * 1.0083

0.115 * 1.1371

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.107

4.679 * -0.070122

0.327 * 1.2883

-3.05

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was €706 Mil.
Revenue was 1298.609 + 1219.143 + 1243.188 + 1287.448 = €5,048 Mil.
Gross Profit was 725.705 + 655.838 + 716.352 + 431.572 = €2,529 Mil.
Total Current Assets was €2,293 Mil.
Total Assets was €12,109 Mil.
Property, Plant and Equipment(Net PPE) was €717 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,333 Mil.
Selling, General, & Admin. Expense(SGA) was €2,366 Mil.
Total Current Liabilities was €2,765 Mil.
Long-Term Debt & Capital Lease Obligation was €3,290 Mil.
Net Income was -119.566 + -329.316 + -243.398 + -2670.76 = €-3,363 Mil.
Non Operating Income was -21.87 + -16.218 + -48.865 + -2121.06 = €-2,208 Mil.
Cash Flow from Operations was -4.584 + -115.688 + -177.439 + -8.188 = €-306 Mil.

Total Receivables was €692 Mil.
Revenue was 1252.897 + 1217.35 + 1185.778 + 1350.751 = €5,007 Mil.
Gross Profit was 621.818 + 389.23 + 626.902 + 208.469 = €1,846 Mil.
Total Current Assets was €2,034 Mil.
Total Assets was €13,659 Mil.
Property, Plant and Equipment(Net PPE) was €657 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,865 Mil.
Selling, General, & Admin. Expense(SGA) was €2,120 Mil.
Total Current Liabilities was €2,469 Mil.
Long-Term Debt & Capital Lease Obligation was €2,833 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(706.127 / 5048.388)	/	(692.335 / 5006.776)
	=	0.139872	/	0.13828
	=	1.0115

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(1846.419 / 5006.776)	/	(2529.467 / 5048.388)
	=	0.368784	/	0.501044
	=	0.736

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (2293.242 + 717.492) / 12109.305)	/	(1 - (2034.364 + 657.489) / 13659.357)
	=	0.75137	/	0.80293
	=	0.9358

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	5048.388	/	5006.776
	=	1.0083

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(1864.508 / (1864.508 + 657.489))	/	(1333.285 / (1333.285 + 717.492))
	=	0.739298	/	0.650137
	=	1.1371

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(2366.273 / 5048.388)	/	(2119.922 / 5006.776)
	=	0.468719	/	0.423411
	=	1.107

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((3289.975 + 2764.821) / 12109.305)	/	((2832.521 + 2468.931) / 13659.357)
	=	0.500012	/	0.388119
	=	1.2883

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-3363.04 - -2208.013	-	-305.899)	/	12109.305
	=	-0.070122

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Take-Two Interactive Software has a M-score of -3.05 suggests that the company is unlikely to be a manipulator.

Take-Two Interactive Software Beneish M-Score Related Terms

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Take-Two Interactive Software Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

TTWO:USA TTWO:Mexico 0LCX:UK TKE:Germany TKE:Germany T1TW34:Brazil

Address

110 West 44th Street, New York, NY, USA, 10036

Website

https://www.take2games.com

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.