Marathon Digital Holdings Inc (MARA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | -129.28% | -74.86% | -119.45% | -11.87% | -61.46% |
| Operating profit margin | 46.64% | 57.01% | -572.00% | -8.50% | -226.43% |
| Pretax margin | 93.96% | 71.64% | -601.75% | -9.75% | -240.91% |
| Net profit margin | 82.46% | 67.40% | -589.39% | -24.91% | -240.96% |
Marathon Digital Holdings Inc has experienced significant fluctuations in its profitability ratios over the years. The gross profit margin, which represents the percentage of revenue remaining after subtracting the cost of goods sold, has shown a negative trend, with values ranging from -11.87% in 2021 to -129.28% in 2024. This indicates that the company's production costs have been exceeding its gross revenues during these periods.
Looking at the operating profit margin, which shows the proportion of revenue that translates into operating income, the company witnessed a notable improvement from -572.00% in 2022 to 46.64% in 2024. This suggests that Marathon Digital Holdings has been able to control its operating expenses and generate positive operating income in the later years.
The pretax margin, reflecting the percentage of revenue remaining after accounting for operating expenses and before taxes, has also displayed a volatile pattern. The company's performance ranged from -601.75% in 2022 to 93.96% in 2024, indicating significant fluctuations in profitability before taxes.
Lastly, the net profit margin, which indicates the portion of revenue that translates into net income after all expenses are accounted for, improved from -589.39% in 2022 to 82.46% in 2024. This suggests that Marathon Digital Holdings Inc has been able to effectively manage its expenses and generate positive net income in the most recent year.
Overall, the company has shown improvements in its profitability ratios over the years, with a particular focus on controlling costs and enhancing its operational efficiency to drive profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.50% | 11.10% | -56.35% | -0.88% | -3.13% |
| Return on assets (ROA) | 7.96% | 13.12% | -58.07% | -2.57% | -3.34% |
| Return on total capital | 4.80% | 14.83% | -59.38% | -0.92% | -3.34% |
| Return on equity (ROE) | 13.11% | 16.16% | -179.83% | -5.44% | -3.35% |
Based on the provided data, Marathon Digital Holdings Inc's profitability ratios have shown fluctuations over the past five years.
1. Operating Return on Assets (Operating ROA):
- The company's Operating ROA was negative in 2020 and 2021, indicating that the operating income generated was insufficient to cover the total assets.
- In 2022, the Operating ROA significantly deteriorated to -56.35%, reflecting a substantial decrease in operating profitability relative to the total assets.
- However, there was a notable improvement in 2023 and 2024, with positive Operating ROA figures of 11.10% and 4.50% respectively, suggesting that the company became more efficient in generating operating income from its assets.
2. Return on Assets (ROA):
- Similar to Operating ROA, the ROA was negative in 2020 and 2021, indicating poor asset utilization and profitability.
- In 2022, the ROA worsened to -58.07%, implying a significant decline in overall profitability compared to the total assets.
- The positive trend in profitability continued in 2023 and 2024, with ROA improving to 13.12% and 7.96% respectively, showing that the company achieved a better return on its total assets.
3. Return on Total Capital:
- The Return on Total Capital also showed negative figures in 2020 and 2021, indicating that the capital invested in the business was not effectively utilized to generate returns.
- In 2022, the ratio worsened to -59.38%, suggesting a further decline in the company's ability to generate profits from total invested capital.
- Notably, there was a significant improvement in 2023, with a Return on Total Capital of 14.83%, indicating that the company managed to enhance its capital efficiency.
- However, in 2024, the ratio decreased to 4.80%, though still positive, showing a slight drop in returns compared to the total invested capital.
4. Return on Equity (ROE):
- Marathon Digital Holdings Inc's Return on Equity was negative in 2020 and 2021, indicating a lack of profitability in relation to shareholder equity.
- The ROE deteriorated significantly in 2022 to -179.83%, suggesting a substantial loss in profitability on shareholders' equity.
- Encouragingly, the company's ROE improved in 2023 and 2024 to 16.16% and 13.11% respectively, indicating that shareholders' equity was generating positive returns.
In conclusion, Marathon Digital Holdings Inc's profitability ratios have shown varied performance over the years, with improvements in recent periods. The positive trends in Operating ROA, ROA, Return on Total Capital, and ROE indicate enhanced profitability and efficiency in utilizing assets and capital.