Debt-to-Equity Ratio

A company's debt-to-equity ratio compares its total debt to shareholders' equity, showing how much it relies on borrowing versus its own funds; a ratio of 0.72x means it uses $0.72 of debt for every $1 of equity.

This is slightly below the sector median of 0.73x, placing TTWO at the 48th percentile among peers—essentially in line with the typical sector leverage. The metric has been decreasing over the last eight quarters, with a quarter-over-quarter decline of -14.3% from the prior quarter; a year-over-year comparison is not available. The combination of a near-median level and a declining trend suggests TTWO is reducing its debt load, which typically lowers financial risk if continued, but the current level is already conservative relative to the sector. This metric supports the overall NEUTRAL verdict because the ratio is neither unusually high (elevating risk) nor unusually low (indicating under-leveraging), and the downward trend does not signal a pending shift in financial health.

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