Marathon Digital Holdings Inc (MARA)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 541,253 | 261,173 | -694,022 | -37,096 | -10,448 |
| Total stockholders’ equity | US$ in thousands | 4,129,030 | 1,615,920 | 385,941 | 682,100 | 311,745 |
| ROE | 13.11% | 16.16% | -179.83% | -5.44% | -3.35% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $541,253K ÷ $4,129,030K
= 13.11%
Analyzing Marathon Digital Holdings Inc's return on equity (ROE) over the past five years reveals a mixed performance. The company experienced negative ROE in the years ending December 31, 2020 (-3.35%) and December 31, 2021 (-5.44%), indicating challenges in generating profits relative to shareholder equity. The significant decline in ROE to -179.83% as of December 31, 2022, reflects a substantial loss relative to equity that year.
However, there is a positive turnaround in the company's performance in the following years. Marathon Digital Holdings Inc achieved a ROE of 16.16% as of December 31, 2023, indicating improved profitability efficiency in generating returns for shareholders. This positive trend continued with a ROE of 13.11% as of December 31, 2024, suggesting a sustained improvement in utilizing equity to generate profits.
Overall, the company's ROE performance demonstrates a volatile trajectory over the past five years, indicating fluctuations in profitability relative to shareholder investments. The recent positive ROE figures suggest that Marathon Digital Holdings Inc has shown improvement in efficiently leveraging equity to create value for its shareholders. Moving forward, monitoring this metric will be crucial to assess the company's profitability and shareholder value creation capabilities.
Peer comparison
Dec 31, 2024