What is Take-Two Interactive Software Sloan Ratio %?
Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
* 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.
Competitive Comparison of Take-Two Interactive Software's Sloan Ratio %
For the Electronic Gaming & Multimedia subindustry, Take-Two Interactive Software's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Take-Two Interactive Software's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Take-Two Interactive Software's Sloan Ratio % falls into.
Take-Two Interactive Software Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Take-Two Interactive Software's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was -2670.76 (Mar. 2024 ) + -243.398 (Jun. 2024 ) + -329.316 (Sep. 2024 ) + -119.566 (Dec. 2024 ) = €-3,363 Mil.
Take-Two Interactive Software's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was -8.188 (Mar. 2024 ) + -177.439 (Jun. 2024 ) + -115.688 (Sep. 2024 ) + -4.584 (Dec. 2024 ) = €-306 Mil.
Take-Two Interactive Software's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -50.324 (Mar. 2024 ) + -32.236 (Jun. 2024 ) + -30.003 (Sep. 2024 ) + -19.769 (Dec. 2024 ) = €-132 Mil.
* 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.
Take-Two Interactive Software (WBO:TTWO) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Dec. 2024, Take-Two Interactive Software has a Sloan Ratio of -24.15%, indicating earnings are more likely to be made up of accruals.
Take-Two Interactive Software Sloan Ratio % Related Terms
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Take-Two Interactive Software Business Description
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.
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