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Take-Two Interactive Software Altman Z-Score

: 1.92 (As of Today)
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Warning Sign:

Altman Z-score of 1.9 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

Take-Two Interactive Software has a Altman Z-Score of 1.92, indicating it is in Grey Zones. This implies that Take-Two Interactive Software is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

TTWO' s Altman Z-Score Range Over the Past 10 Years
Min: 0.82   Med: 3.92   Max: 9.25
Current: 1.9

During the past 13 years, Take-Two Interactive Software's highest Altman Z-Score was 9.25. The lowest was 0.82. And the median was 3.92.


Take-Two Interactive Software Altman Z-Score Historical Data

The historical data trend for Take-Two Interactive Software's Altman Z-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.

* Premium members only.

Take-Two Interactive Software Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.83 4.24 5.00 6.29 5.48

Take-Two Interactive Software Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score 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 Premium Member Only Premium Member Only Premium Member Only 6.34 4.96 6.21 5.48 1.92

Competitive Comparison

For the Electronic Gaming & Multimedia subindustry, Take-Two Interactive Software's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Altman Z-Score Distribution

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

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



Take-Two Interactive Software Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Take-Two Interactive Software's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*-0.0141+1.4*0.1231+3.3*0.0126+0.6*2.5079+1.0*0.2138
=1.92

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $17,745 Mil.
Total Current Assets was $3,036 Mil.
Total Current Liabilities was $3,287 Mil.
Retained Earnings was $2,185 Mil.
Pre-Tax Income was -106.3 + 121.841 + 152.139 + 19.974 = $188 Mil.
Interest Expense was -29.3 + 0 + -5.629 + -0.572 = $-36 Mil.
Revenue was 1102.4 + 930.004 + 903.252 + 858.198 = $3,794 Mil.
Market Cap (Today) was $20,270 Mil.
Total Liabilities was $8,083 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(3036 - 3286.7)/17744.9
=-0.0141

X2=Retained Earnings/Total Assets
=2185/17744.9
=0.1231

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(187.654 - -35.501)/17744.9
=0.0126

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=20270.423/8082.6
=2.5079

X5=Revenue/Total Assets
=3793.854/17744.9
=0.2138

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Take-Two Interactive Software has a Altman Z-Score of 1.92 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Take-Two Interactive Software  (NAS:TTWO) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Take-Two Interactive Software Altman Z-Score Related Terms

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Take-Two Interactive Software Business Description

Take-Two Interactive Software logo
Address
110 West 44th Street, New York, NY, USA, 10036
Found in 1993, Take-Two consists of two wholly owned labels, Rockstar Games and 2K. 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."
Executives
Gordon William B director
Siminoff Ellen F director 555 ELLIS STREET MOUNTAIN VIEW CA 94043
Hernandez Roland A director 300 NORTH SAN RAFAEL AVE PASADENA CA 91105
Viera Paul E director C/O TAKE-TWO INTERACTIVE SOFTWARE, INC. 110 WEST 44TH STREET NEW YORK NY 10036
Srinivasan Laverne Evans director C/O TAKE-TWO INTERACTIVE SOFTWARE, INC. 622 BROADWAY NEW YORK NY 10012
Emerson Daniel P officer: General Counsel 622 BROADWAY NEW YORK NY 10012
Tolson Susan director C/O TAKE-TWO INTERACTIVE SOFTWARE, INC. 622 BROADWAY NEW YORK NY 10019
Feder Benjamim officer: Chief Executive Officer C/O ZELNICKMEDIA CORPORATION 650 5TH AVENUE NEW YORK NY 10019
Slatoff Karl officer: Executive Vice President C/O ZELNICKMEDIA CORPORATION 19 WEST 44TH STREET, 18TH FLOOR NEW YORK NY 10036
Icahn Brett director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Nelson James Larry director 2747 PARADISE ROAD PH2804 LAS VEGAS NV 89109
Cho Sunghwan director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Zelnick Strauss director, officer: Executive Chairman C/O ZELNICKMEDIA 650 FIFTH AVE 31ST FLOOR NEW YORK NY 10019
Goldstein Lainie officer: Chief Financial Officer C/O TAKE-TWO INTERACTIVE SOFTWARE, INC. 622 BROADWAY NEW YORK NY 10012
Krauss Seth D officer: Exec VP and General Counsel C/O TAKE-TWO INTERACTIVE SOFTWARE, INC. 222 BROADWAY NEW YORK NY 10012

Take-Two Interactive Software Headlines

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