Marathon Digital Holdings Inc (MARA)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 391,771 | 357,313 | 103,705 | 268,556 | 141,323 |
| Short-term investments | US$ in thousands | — | 639,660 | 121,842 | 223,916 | 2,272 |
| Total current liabilities | US$ in thousands | 95,197 | 33,758 | 26,115 | 11,250 | 1,444 |
| Cash ratio | 4.12 | 29.53 | 8.64 | 43.78 | 99.44 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($391,771K
+ $—K)
÷ $95,197K
= 4.12
The cash ratio of Marathon Digital Holdings Inc has shown a decreasing trend over the years. As of December 31, 2020, the cash ratio was at a robust 99.44, indicating a strong ability to cover short-term liabilities with cash on hand. However, by December 31, 2024, the cash ratio had declined significantly to 4.12, suggesting that the company may have a lower ability to meet its short-term obligations solely through its cash reserves.
It's important to note that a higher cash ratio is generally preferred as it signifies a strong liquidity position, while a lower ratio may raise concerns about the company's ability to weather unexpected financial difficulties or meet immediate financial commitments. Marathon Digital Holdings Inc should monitor its cash ratio closely and consider strategies to maintain a healthy balance between cash reserves and operational needs.
Peer comparison
Dec 31, 2024