Marathon Digital Holdings Inc (MARA)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 312,887 | 212,553 | 451,522 | 667,829 | 287,949 | -363,006 | -504,552 | -686,478 | -703,047 | -258,034 | -205,409 | -116,278 | -12,950 | -52,642 | -32,461 | 74,633 | -9,818 | -6,583 | -5,397 | -4,347 |
| Long-term debt | US$ in thousands | 2,246,580 | 618,683 | 326,513 | 326,083 | 325,654 | 325,266 | 734,231 | 733,260 | 782,171 | 781,182 | 730,348 | 729,377 | 728,406 | — | — | 63 | 63 | 63 | 63 | 999 |
| Total stockholders’ equity | US$ in thousands | 4,129,030 | 2,855,590 | 2,642,660 | 2,476,890 | 1,615,920 | 1,019,950 | 594,496 | 545,869 | 385,941 | 625,102 | 659,448 | 776,394 | 682,100 | 660,416 | 580,519 | 683,723 | 311,745 | 36,287 | 9,658 | 3,170 |
| Return on total capital | 4.91% | 6.12% | 15.21% | 23.83% | 14.83% | -26.98% | -37.97% | -53.67% | -60.19% | -18.35% | -14.78% | -7.72% | -0.92% | -7.97% | -5.59% | 10.91% | -3.15% | -18.11% | -55.52% | -104.27% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $312,887K ÷ ($2,246,580K + $4,129,030K)
= 4.91%
The return on total capital for Marathon Digital Holdings Inc has shown significant volatility over the past several quarters. Starting in March 2020 with a drastic decline of -104.27%, the company's performance gradually improved, albeit with fluctuations along the way. By March 2021, Marathon Digital Holdings Inc managed to achieve a positive return on total capital of 10.91%. However, this improvement was short-lived as the company's performance deteriorated once again, posting negative returns in subsequent periods.
The return on total capital remained negative for most of the quarters up to December 2023, with varying magnitudes of decline. The company experienced a notable positive turnaround in the fourth quarter of 2023, recording a return on total capital of 14.83%. This improvement continued into the first two quarters of 2024, with returns of 23.83% and 15.21% respectively.
Despite the recent positive trend, Marathon Digital Holdings Inc experienced a slight decline in return on total capital in the third quarter of 2024, dropping to 6.12%. The company's performance further decreased to 4.91% by the end of December 2024.
Overall, Marathon Digital Holdings Inc has faced challenges in generating satisfactory returns on its total capital, marked by periods of both negative and positive performance. The company needs to focus on maintaining and improving its return on total capital to ensure sustainable growth and efficiency in its capital utilization.
Peer comparison
Dec 31, 2024