Marathon Digital Holdings Inc (MARA)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 306,111 | 287,949 | -693,598 | -12,950 | -10,425 |
| Long-term debt | US$ in thousands | 2,246,580 | 325,654 | 782,171 | 728,406 | 63 |
| Total stockholders’ equity | US$ in thousands | 4,129,030 | 1,615,920 | 385,941 | 682,100 | 311,745 |
| Return on total capital | 4.80% | 14.83% | -59.38% | -0.92% | -3.34% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $306,111K ÷ ($2,246,580K + $4,129,030K)
= 4.80%
Based on the provided data, Marathon Digital Holdings Inc has experienced fluctuating returns on total capital over the years.
1. December 31, 2020: The return on total capital was -3.34%, indicating that the company's capital utilization led to a negative return.
2. December 31, 2021: The return on total capital improved slightly to -0.92%, but still reflected a negative performance.
3. December 31, 2022: The return on total capital significantly declined to -59.38%, indicating a substantial decrease in capital efficiency, which could be a cause for concern.
4. December 31, 2023: The return on total capital rebounded to 14.83%, showing a positive turnaround in capital utilization and efficiency.
5. December 31, 2024: The return on total capital further improved to 4.80%, suggesting that the company was able to generate a decent return on its total capital investment.
Overall, Marathon Digital Holdings Inc's return on total capital has shown volatility, with some years experiencing negative returns while others have displayed positive growth. It is essential for the company to continue monitoring and optimizing its capital allocation strategies to ensure sustainable and improved returns in the future.
Peer comparison
Dec 31, 2024