Marathon Digital Holdings Inc (MARA)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 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 | 15.99 | 8.51 | 16.09 | 8.98 | 3.22 | 1.40 | 28.18 | 65.37 | 23.13 | 29.02 | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | -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 | 0.00 | 0.00 | 0.00 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 6.09 – 15.99
= -9.90
The cash conversion cycle of Marathon Digital Holdings Inc has fluctuated over the periods outlined in the table. For the most recent quarter ending March 31, 2024, the company reported a negative cash conversion cycle of -9.90 days, indicating that it is able to collect cash from its operations before having to pay its suppliers.
In the previous quarter, ending December 31, 2023, the cash conversion cycle improved further to -8.51 days, suggesting the company's efficiency in managing its working capital and converting inventory into cash quickly.
However, in the quarter ending June 30, 2023, the cash conversion cycle increased significantly to 19.77 days, which may signal potential delays in converting inventory into sales and collecting cash from customers.
Notably, in the quarter ending September 30, 2022, the cash conversion cycle was 35.56 days, indicating a longer period for the company to convert its resources into cash. This extended cycle could be a result of operational inefficiencies or challenges in managing working capital effectively.
Going back to the quarter ending December 31, 2020, the cash conversion cycle was notably high at 9,715.43 days, which could be an anomaly or an indication of significant issues in the company's cash flow management during that period.
Overall, monitoring the cash conversion cycle is crucial for understanding how efficiently Marathon Digital Holdings Inc is managing its working capital, inventory, and accounts receivable to generate cash flows. A negative or low cash conversion cycle generally indicates effective working capital management, while a high or positive cycle may raise concerns about liquidity and operational efficiency.
Peer comparison
Mar 31, 2024