Marathon Digital Holdings Inc (MARA)

Liquidity ratios

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
Current ratio 4.94 4.00 3.75 23.07 30.51 11.33 14.91 16.22 10.63 5.27 4.02 38.74 60.82 141.33 146.98 219.27 198.34 27.84 6.26 1.07
Quick ratio 4.09 2.79 14.45 22.03 29.53 16.90 12.31 13.19 8.64 1.22 2.81 23.88 46.44 61.57 100.91 170.26 151.22 15.60 0.95 0.34
Cash ratio 4.12 2.75 14.26 21.92 29.53 16.87 12.28 13.18 8.64 1.22 2.48 21.93 43.78 61.57 100.91 170.26 99.44 15.60 0.95 0.34

Based on the provided data for Marathon Digital Holdings Inc, the liquidity ratios show fluctuating levels over the reported periods.

1. Current Ratio: The current ratio measures the company's ability to cover its short-term obligations with its current assets. Marathon Digital Holdings Inc's current ratio has seen significant fluctuations over the periods. It increased from 1.07 on March 31, 2020, to a peak of 219.27 on March 31, 2021. However, there was a decline in the current ratio thereafter, with the ratio standing at 4.94 on December 31, 2024.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of a company's liquidity by excluding inventory from current assets. Marathon Digital Holdings Inc's quick ratio exhibited a similar trend to the current ratio, peaking at 170.26 on March 31, 2021, and declining to 4.09 on December 31, 2024.

3. Cash Ratio: The cash ratio focuses solely on a company's ability to cover its short-term liabilities with its cash and cash equivalents. Marathon Digital Holdings Inc's cash ratio followed a trend similar to the quick and current ratios, peaking at 170.26 on March 31, 2021, and decreasing to 4.12 on December 31, 2024.

Overall, the liquidity ratios of Marathon Digital Holdings Inc show significant volatility over the reported periods, with the company experiencing fluctuations in its ability to meet short-term obligations with its current assets and cash reserves. Investors and stakeholders should closely monitor these ratios to assess the company's liquidity position and financial health.

Additional liquidity measure

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
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

The cash conversion cycle of Marathon Digital Holdings Inc has shown significant fluctuations over the past few years. From December 31, 2020, to March 31, 2023, the company had a very high cash conversion cycle ranging from 8.96 days to 9,715.43 days, indicating a long period for the company to convert its investments in inventory into cash receipts.

However, starting from June 30, 2023, the cash conversion cycle improved dramatically, reaching negative values, which means the company is able to convert its inventory into cash receipts more quickly than before. This trend continued through December 31, 2024, with the cash conversion cycle ranging from -9.90 days to -3.43 days, signifying efficient management of inventory and quicker realization of cash.

The negative cash conversion cycle indicates that Marathon Digital Holdings Inc is efficiently managing its working capital, optimizing cash flows by reducing the time it takes to convert inventory into sales and subsequently into cash receipts. This improvement can positively impact the company's liquidity, profitability, and overall financial performance.