Marathon Digital Holdings Inc (MARA)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 7.63 | 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 | 3.05 | 6.11 | 1.16 | 17.03 | — |
| Cash conversion cycle | days | -3.05 | 1.52 | 8.79 | 132.02 | 9,716.39 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – 3.05
= -3.05
The cash conversion cycle of Marathon Digital Holdings Inc has shown a significant improvement over the years, indicating more efficient management of cash flow and working capital.
As of December 31, 2020, the company's cash conversion cycle was 9,716.39 days, reflecting a prolonged period between cash outflows and inflows. However, by December 31, 2021, this cycle had decreased drastically to 132.02 days, suggesting a more rapid conversion of investments in inventory and accounts receivable into cash.
By the end of December 31, 2022, Marathon Digital Holdings Inc managed to further optimize its cash conversion cycle to 8.79 days, indicating improved liquidity and operational efficiency. This trend continued into December 31, 2023, with a mere 1.52 days required to convert investments into cash.
Interestingly, by December 31, 2024, the company achieved a negative cash conversion cycle of -3.05 days, implying that Marathon Digital Holdings Inc was able to generate cash from sales prior to paying suppliers, showcasing a highly efficient cash management strategy.
Overall, the progressive reduction and optimization of the cash conversion cycle signify Marathon Digital Holdings Inc's enhanced ability to manage working capital effectively and generate cash flow efficiently.
Peer comparison
Dec 31, 2024