Take-Two Interactive Software, — Earnings Quality Grade F
TTWO · Communication Services
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 50 days, change +4 days YoY
AR growth 13.4% exceeds revenue growth 5.3%
Revenue 5.3%, CFFO -180.7%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 19.5% vs revenue 5.3%. Normal
SG&A/Gross Profit = 83.8%, exceeds 70%
Gross margin rose +12.5pp while AR increased and AP decreased. Fraud pattern
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF is negative ($-0.2B)
Accruals ratio = -48.3%. Low accruals
Cash $1.5B covers only 36% of debt $4.1B
Balance Sheet Health
Goodwill+Intangibles $5.2B = 246% of equity. Over 50%
Interest coverage = -4.4x (<2x). Financial stress
Other assets 7.7% vs revenue 5.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Goodwill+Intangibles change -41% YoY. Normal
Manipulation Score
M-Score = -4.98 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08