MeritValue

TAKE TWO INTERACTIVE SOFTWARE INC

TTWOdata completeness 100%19 fiscal years on file
The thesis, from the filings

TAKE TWO INTERACTIVE SOFTWARE INC earns about -20% on invested capital, but has diluted owners by 57% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$3.5B1$5.35B2$5.35B3$5.63B3$6.66B3
Net income$418M4−$1.12B5−$3.74B6−$4.48B6−$298.2M6
Operating cash flow$258M7$1.1M8−$16.1M9−$45.2M9$624.3M9
Capital expenditure$158.6M10$204.2M11$141.7M12$169.4M12$162.8M12
Free cash flow (derived)$99.4M7−$203.1M8−$157.8M9−$214.6M9$461.5M9
Total debt$013$4.81B14$3.08B15$3.66B16$2.52B16
Cash & equivalents$1.73B17$827.4M18$754M19$1.46B20$1.55B20
Diluted shares116.8M159.9M170.1M175.1M183.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$190.91
your share of equity
Profit it earned you last year
−$16.22
Free cash flow it threw off
$25.1
Debt you’d be carrying
$136.92

10 shares is a claim on $190.91 of net worth that earned you −$16.22 and generated $25.1 of cash last year, against $136.92 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-20% avg · 5y
FY22 20%FY23 -7%FY24 -35%FY25 -79%FY26 -1%

It earned an average -20% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+57% shares · 5y

Share count is up 57% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-03-31 · accession 0001628280-24-024623 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-03-31 · accession 0001628280-25-026694 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-03-31 · accession 0001628280-26-037434 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-03-31 · accession 0001628280-24-024623 (NetIncomeLoss)
  5. 10-K · period ending 2023-03-31 · accession 0001628280-25-026694 (NetIncomeLoss)
  6. 10-K · period ending 2024-03-31 · accession 0001628280-26-037434 (NetIncomeLoss)
  7. 10-K · period ending 2022-03-31 · accession 0001628280-24-024623 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-03-31 · accession 0001628280-25-026694 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-03-31 · accession 0001628280-26-037434 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-03-31 · accession 0001628280-24-024623 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-03-31 · accession 0001628280-25-026694 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-03-31 · accession 0001628280-26-037434 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-03-31 · accession 0001628280-23-019851 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-03-31 · accession 0001628280-24-024623 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2024-03-31 · accession 0001628280-25-026694 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2025-03-31 · accession 0001628280-26-037434 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2022-03-31 · accession 0001628280-23-019851 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-03-31 · accession 0001628280-24-024623 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-03-31 · accession 0001628280-25-026694 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2025-03-31 · accession 0001628280-26-037434 (CashAndCashEquivalentsAtCarryingValue)