TTWONEUTRAL

Return on Equity (ROE)

-10.6%

Updated 560h ago

Sector Performance

11th percentile

TTWO

-10.6%

Sector Median

13.8%

Sector Avg

31.4%

📊

Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity; a negative -10.6% means the company is currently losing money relative to its equity base.

This is far below the sector median of 13.9%, placing TTWO at the 11th percentile among peers — meaning 89% of sector companies have a higher ROE. While the metric has been increasing over the last eight quarters, the most recent quarter shows a -24.7% decline from -8.5% to -10.6%; a year-over-year comparison is not available. The combination of a persistently negative ROE with a recent quarterly worsening signals elevated profitability risk, though the longer-term improvement from -209.5% to -10.6% suggests some underlying recovery. This mixed picture — weak current level versus a generally improving trend now reversing — neither strongly supports nor undermines the overall NEUTRAL verdict.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about TTWO?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are TTWO's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.