Marathon Digital Holdings Inc (MARA)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of Marathon Digital Holdings Inc:

1. Inventory Turnover:
- The inventory turnover ratio indicates how efficiently the company manages its inventory.
- The inventory turnover ratio for Marathon Digital Holdings Inc started to improve significantly from December 31, 2021, to reach a peak of 48.61 by September 30, 2023.
- The company had some fluctuations in its inventory turnover ratio after reaching its peak, with a significant drop to 13.33 by June 30, 2023.
- The absence of data for certain periods indicates that inventory turnover was not applicable or not significant during those times.

2. Receivables Turnover:
- The receivables turnover ratio measures how efficiently the company collects its outstanding receivables.
- Marathon Digital Holdings Inc's receivables turnover ratio showed improvement over time, reaching a peak of 10,974.89 by December 31, 2022, before declining significantly by March 31, 2023.
- The company experienced fluctuations in receivables turnover, with significant decreases and increases in some periods.
- The absence of data for certain periods suggests fluctuations or changes in the efficiency of collecting receivables during those times.

3. Payables Turnover:
- The payables turnover ratio assesses how quickly the company pays its suppliers for credit purchases.
- Marathon Digital Holdings Inc's payables turnover ratio showed volatile movements over the periods, with substantial fluctuations in values.
- The payables turnover ratio started to increase significantly from December 31, 2021, reaching a peak of 260.94 by December 31, 2022, before declining over the subsequent periods.
- The fluctuations in the payables turnover ratio indicate changes in the company's payment behavior towards its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively the company utilizes its working capital to generate revenue.
- Marathon Digital Holdings Inc's working capital turnover ratio showed fluctuations over time, with varying values in different periods.
- The company experienced peaks and troughs in working capital turnover, indicating changes in the efficiency of using working capital to generate revenue.
- The company had periods of both improvement and decline in working capital turnover, highlighting changes in operational efficiency.

Overall, the analysis of Marathon Digital Holdings Inc's activity ratios reveals fluctuations and trends in the efficiency of managing inventory, collecting receivables, paying suppliers, and utilizing working capital over the periods analyzed.

---

Average number of days

Based on the data provided, we can analyze Marathon Digital Holdings Inc's activity ratios.

1. Days of Inventory on Hand (DOH):
- The DOH ratio indicates the average number of days it takes for the company to sell its inventory.
- Marathon Digital Holdings Inc's DOH has shown a decreasing trend, from 3,423.07 days on December 31, 2020, to 11.86 days on March 31, 2023.
- A lower DOH is generally positive as it implies efficient inventory management and faster inventory turnover.

2. Days of Sales Outstanding (DSO):
- The DSO ratio measures how long it takes for the company to collect its accounts receivable.
- The DSO for Marathon Digital Holdings Inc fluctuated, with a significant decrease from 6,292.36 days on December 31, 2020, to 0.31 days on March 31, 2023.
- A lower DSO is favorable as it indicates efficient credit and collection management.

3. Number of Days of Payables:
- This ratio reveals the number of days the company takes to pay its suppliers.
- Marathon Digital Holdings Inc's payables period varied, with a notable decrease from 29.02 days on December 31, 2021, to 3.43 days on December 31, 2024.
- A shorter payables period can signify better cash management and perhaps stronger relations with suppliers.

Overall, the trends in these activity ratios suggest that Marathon Digital Holdings Inc has improved its inventory management, accounts receivable collection, and payment to suppliers over the analyzed period. This enhanced efficiency can potentially lead to better working capital management and overall financial performance for the company.

---

Long-term

The Fixed Asset Turnover ratio for Marathon Digital Holdings Inc has shown fluctuations over the periods analyzed. It started at 0.59 in March 2020, dropped to 0.25 by December 2020, gradually increased to reach its peak at 0.99 in September 2021, and then fluctuated around the range of 0.5 to 0.7 until December 2024.

On the other hand, the Total Asset Turnover ratio was quite low in the initial periods, ranging between 0.01 to 0.14 up to December 2021. However, from March 2022 onwards, there was a noticeable improvement with the ratio consistently staying above 0.10, showing a better utilization of total assets to generate sales.

Overall, both ratios indicate the company's efficiency in utilizing its fixed assets and total assets to generate revenues. The improving trend in the Total Asset Turnover ratio from March 2022 suggests potential growth opportunities and better asset utilization efficiency in the long term. However, fluctuations in the Fixed Asset Turnover ratio may require further investigation to understand the underlying reasons for the changes.