Marathon Digital Holdings Inc (MARA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 36.88 | 4.83 | 0.11 | — |
| Receivables turnover | — | 6,541.83 | 4.96 | 0.06 | — |
| Payables turnover | 59.74 | 313.40 | 21.43 | — | — |
| Working capital turnover | 0.39 | 0.47 | 0.22 | 0.02 | — |
Marathon Digital Holdings Inc's activity ratios indicate the efficiency with which the company manages its assets and liabilities.
1. Inventory turnover:
The inventory turnover ratio improved significantly from 2019 to 2022, indicating that the company is managing its inventory more efficiently. However, inventory turnover for 2023 is not available for analysis.
2. Receivables turnover:
The receivables turnover ratio shows a positive trend from 2019 to 2022, suggesting the company is collecting its receivables at a faster pace. The absence of data for 2023 limits a complete assessment.
3. Payables turnover:
Marathon's payables turnover ratio decreased from 2021 to 2022 but remained at a relatively high level, indicating that the company pays its suppliers at a fast rate. The absence of data for 2020 and 2023 limits trend comparison.
4. Working capital turnover:
The working capital turnover ratio depicts an increasing trend from 2019 to 2022, implying that the utilization of working capital to generate revenue has improved over time. However, the ratio decreased slightly in 2023, possibly indicating a change in the management of working capital efficiency.
Overall, Marathon Digital Holdings Inc has shown positive trends in its activity ratios, signaling improved efficiency in managing inventory, receivables, payables, and working capital over the years. Continued monitoring and analysis of these ratios will provide insights into the company's ongoing operational performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 9.90 | 75.51 | 3,422.59 | — |
| Days of sales outstanding (DSO) | days | — | 0.06 | 73.54 | 6,293.81 | — |
| Number of days of payables | days | 6.11 | 1.16 | 17.03 | — | — |
Days of inventory on hand (DOH) measures the average number of days it takes for a company to sell its inventory. In the case of Marathon Digital Holdings Inc, the trend indicates a significant improvement in inventory management efficiency over the years. The DOH decreased from 3422.59 days in 2021 to 9.90 days in 2022, which suggests that the company has been able to better manage its inventory levels and turnover.
Days of sales outstanding (DSO) shows how long it takes for a company to collect payments from its customers. Marathon Digital Holdings Inc managed to reduce its DSO from 6293.81 days in 2020 to 0.06 days in 2022, indicating a substantial improvement in its accounts receivable collection process.
Number of days of payables reflects how long a company takes to pay its suppliers. Marathon Digital Holdings Inc has seen fluctuations in its payables days over the years, with an increase from 1.16 days in 2022 to 6.11 days in 2023. This increase could suggest that the company is taking longer to pay its suppliers, potentially impacting relationships with vendors.
Overall, the company has shown significant improvements in its activity ratios, indicating better management of inventory, accounts receivable, and payables. These improvements could lead to enhanced cash flow, operational efficiency, and stronger relationships with both customers and suppliers.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.58 | 0.43 | 0.54 | 0.25 | 0.35 |
| Total asset turnover | 0.19 | 0.10 | 0.10 | 0.01 | 0.20 |
Marathon Digital Holdings Inc's analysis of long-term activity ratios reveals insights into the company's asset utilization efficiency over the past five years.
The fixed asset turnover ratio, which measures how efficiently the company generates revenue from its fixed assets, has shown fluctuations over the period. The ratio improved from 0.35 in 2019 to 0.54 in 2021 before declining to 0.43 in 2022 and further to 0.58 in 2023. This suggests that the company has been able to increase its revenue generation from fixed assets over time, with a notable improvement in 2021.
On the other hand, the total asset turnover ratio, indicating the company's ability to generate sales from all its assets, has shown varying trends. The ratio increased from 0.01 in 2020 to 0.20 in 2019, indicating a significant improvement in asset utilization efficiency. However, there was a decrease in the ratio to 0.10 in both 2022 and 2023, suggesting a potential decline in revenue generation relative to total assets.
Overall, while the company has been able to enhance its revenue generation from fixed assets, there appears to be a need for improvement in utilizing total assets more efficiently to boost sales productivity. It is essential for Marathon Digital Holdings Inc to focus on optimizing its asset utilization strategies to drive sustainable growth and profitability in the long run.