Marathon Digital Holdings Inc (MARA)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 277,599 | -708,578 | -14,520 | -10,446 | -3,517 |
| Revenue | US$ in thousands | 387,508 | 117,753 | 148,894 | 4,336 | 1,303 |
| Pretax margin | 71.64% | -601.75% | -9.75% | -240.91% | -269.92% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $277,599K ÷ $387,508K
= 71.64%
The pretax margin of Marathon Digital Holdings Inc has exhibited significant fluctuations over the past five years.
As at December 31, 2023, the company's pretax margin stood at an impressive 71.64%, indicating that for every dollar of revenue generated, the company was able to retain approximately 71.64 cents before accounting for income taxes. This represents a significant improvement compared to the negative figures reported in the preceding years.
However, the performance in the prior year, as at December 31, 2022, was concerning with a pretax margin of -601.75%. This indicates that the company incurred significant losses before taxes, exceeding its revenue over that period.
In the fiscal year ending December 31, 2021, Marathon Digital Holdings Inc reported a pretax margin of -9.75%, signaling a narrow loss margin relative to revenue. The company experienced a substantial decline in profitability as reflected in the negative pretax margins reported for the fiscal years ending December 31, 2020 and 2019, which were -240.91% and -269.92%, respectively.
Overall, the company's pretax margin has been volatile, with significant improvements seen in the most recent fiscal year, but substantial losses recorded in prior periods. It is crucial for Marathon Digital Holdings Inc to sustain and improve its profitability to enhance its financial health and ensure long-term sustainability.
Peer comparison
Dec 31, 2023