Marathon Digital Holdings Inc (MARA)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | 7.51 | 27.38 | 11.86 | 11.89 | 46.34 | 55.05 | 122.28 | 128.63 | — | — | — | 3,423.07 | — | — | — |
| Days of sales outstanding (DSO) | days | — | 1.70 | 12.11 | 6.09 | — | 1.68 | 1.37 | 0.31 | 0.03 | — | 45.88 | 58.04 | 73.54 | — | — | — | 6,292.36 | — | — | — |
| Number of days of payables | days | 3.43 | 4.26 | 11.38 | 15.99 | 8.51 | 16.09 | 8.98 | 3.22 | 1.40 | 28.18 | 65.37 | 23.13 | 29.02 | — | — | — | — | — | — | — |
| Cash conversion cycle | days | -3.43 | -2.56 | 0.73 | -9.90 | -8.51 | -6.90 | 19.77 | 8.96 | 10.52 | 18.17 | 35.56 | 157.20 | 173.16 | 0.00 | 0.00 | 0.00 | 9,715.43 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – 3.43
= -3.43
The cash conversion cycle of Marathon Digital Holdings Inc has shown significant fluctuations over the analyzed periods.
For the majority of the period up to December 31, 2021, the company had a cash conversion cycle close to zero, indicating efficient management of its working capital. However, by the end of December 31, 2021, the cash conversion cycle increased substantially to 173.16 days, suggesting a lengthening of the time it takes for the company to convert resources into cash.
Subsequently, there was a notable improvement in the cash conversion cycle, with a gradual decrease in the number of days required to convert resources into cash. By September 30, 2023, the cash conversion cycle turned negative, indicating that the company was able to convert resources into cash at a faster rate, potentially enhancing liquidity and operational efficiency.
The trend continued into the future periods, with further reductions in the cash conversion cycle, reaching its lowest point at -3.43 days by December 31, 2024. This indicates that Marathon Digital Holdings Inc streamlined its working capital management processes, resulting in a quicker conversion of resources into cash.
Overall, the analysis reveals that Marathon Digital Holdings Inc experienced fluctuations in its cash conversion cycle, with initial inefficiencies that were later improved to achieve negative cash conversion cycle values, reflecting enhanced efficiency in working capital management.
Peer comparison
Dec 31, 2024