Marathon Digital Holdings Inc (MARA)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 287,949 | -693,598 | -12,950 | -10,425 | -4,239 |
| Long-term debt | US$ in thousands | 325,654 | 782,171 | 728,406 | 63 | 999 |
| Total stockholders’ equity | US$ in thousands | 1,615,920 | 385,941 | 682,100 | 311,745 | 3,648 |
| Return on total capital | 14.83% | -59.38% | -0.92% | -3.34% | -91.22% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $287,949K ÷ ($325,654K + $1,615,920K)
= 14.83%
Marathon Digital Holdings Inc has shown varying levels of return on total capital over the past five years. In 2023, the return on total capital was positive at 14.83%, indicating that the company generated profit relative to its total invested capital. This marks a significant improvement compared to the negative returns in the previous years, particularly in 2022 and 2019, where the company experienced substantial losses. The negative returns in 2022 and 2019 suggest that the company may have struggled to generate sufficient profits to cover its total capital employed during those periods. Despite the fluctuations, it is essential for Marathon Digital Holdings Inc to focus on sustaining and improving its return on total capital to ensure efficient utilization of its invested capital and enhance shareholder value.
Peer comparison
Dec 31, 2023