Marathon Digital Holdings Inc (MARA)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 677,594 | 411,185 | 166,573 | 7,001 | 2,482 |
| Payables | US$ in thousands | 11,343 | 1,312 | 7,773 | — | — |
| Payables turnover | 59.74 | 313.40 | 21.43 | — | — |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $677,594K ÷ $11,343K
= 59.74
The payables turnover ratio for Marathon Digital Holdings Inc has varied significantly over the years, indicating changes in the company's efficiency in managing its accounts payables.
In 2023, the payables turnover ratio was 59.74, suggesting that the company paid its suppliers approximately 59.74 times during the year. This could indicate that Marathon Digital Holdings Inc is paying its suppliers more frequently, which could be due to business expansion, increased purchasing activity, or improved working capital management.
The ratio was substantially higher in 2022 at 313.40, indicating an even faster rate of paying suppliers compared to 2023. This could suggest that the company had a very efficient payables management system in place in 2022, possibly benefiting from favorable credit terms or streamlined payment processes.
In contrast, the payables turnover ratio was lower in 2021 at 21.43, indicating that the company took longer to pay its suppliers compared to 2022 and 2023. This could raise concerns about liquidity management or cash flow constraints during that period.
There is no data available for the payables turnover ratio in 2020 and 2019, preventing a complete trend analysis for those years.
Overall, the fluctuation in Marathon Digital Holdings Inc's payables turnover ratio highlights the importance of closely monitoring accounts payables management to ensure optimal working capital utilization and supplier relationships.
Peer comparison
Dec 31, 2023