Marathon Digital Holdings Inc (MARA)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | -4,240 | -6,949 | -7,636 |
| Long-term debt | US$ in thousands | 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 | 999 | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 3,648 | 3,489 | 1,723 |
| Return on total capital | 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% | -91.24% | -199.17% | -443.18% |
March 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $667,829K ÷ ($326,083K + $2,476,890K)
= 23.83%
The return on total capital for Marathon Digital Holdings Inc has displayed significant fluctuations over the past several quarters. The company achieved a positive return on total capital of 23.83% as of March 31, 2024, indicating efficient utilization of both debt and equity in generating profits.
In contrast, the return on total capital had been negative for many consecutive quarters prior to the recent improvement, reaching its lowest point at -443.18% as of September 30, 2019. This suggests challenges in deploying capital effectively to generate returns for shareholders during those periods.
The positive trend in return on total capital since then is a positive indicator of the company's performance and management's ability to improve profitability and overall operational efficiency. Further analysis and monitoring of this metric will be necessary to assess the sustainability of this positive trend over time.
Peer comparison
Mar 31, 2024