Marathon Digital Holdings Inc (MARA)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 357,313 | 103,705 | 268,556 | 141,323 | 693 |
| Short-term investments | US$ in thousands | 639,660 | 121,842 | 223,916 | 2,272 | 1 |
| Total current liabilities | US$ in thousands | 33,758 | 26,115 | 11,250 | 1,444 | 1,853 |
| Cash ratio | 29.53 | 8.64 | 43.78 | 99.44 | 0.37 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($357,313K
+ $639,660K)
÷ $33,758K
= 29.53
The cash ratio of Marathon Digital Holdings Inc has exhibited significant fluctuations over the past five years. In 2019, the company had a cash ratio of merely 0.37, indicating a very low level of cash reserves relative to its current liabilities. However, there was a drastic improvement in this metric in the subsequent years, with the cash ratio soaring to 99.44 in 2020, reflecting a substantial increase in cash holdings compared to short-term obligations.
The trend continued in 2021, as the cash ratio remained relatively high at 43.78, suggesting that the company continued to maintain a strong liquidity position. However, in 2022, there was a notable decline in the cash ratio to 8.64, indicating a decrease in cash reserves relative to current liabilities. This decline may raise concerns about the company's ability to meet its short-term financial obligations with its available cash resources.
The most recent data point for 2023 shows a recovery in the cash ratio to 29.53, although it remains below the levels seen in 2020 and 2021. This improvement suggests that the company has strengthened its liquidity position compared to the previous year, but there may still be room for further enhancement in managing cash resources effectively to meet obligations as they fall due.
Overall, the fluctuation in Marathon Digital Holdings Inc's cash ratio over the years indicates varying levels of liquidity risk and underscores the importance of closely monitoring cash management practices to ensure the company can meet its short-term financial commitments.
Peer comparison
Dec 31, 2023