Marathon Digital Holdings Inc (MARA)

The solvency ratios of Marathon Digital Holdings Inc exhibit trends indicating changes in the company's leverage and debt management over the years.

1. Debt-to-assets ratio:
- The ratio has been relatively low in the past, starting at 0.00 in 2020 and gradually increasing to 0.65 in 2022 before decreasing to 0.33 in 2024. This suggests that the company's reliance on debt in relation to its assets has been increasing, then stabilizing and slightly decreasing in recent years.

2. Debt-to-capital ratio:
- Similar to the debt-to-assets ratio, the debt-to-capital ratio has followed a pattern of increase from 0.00 in 2020 to 0.67 in 2022, with slight fluctuations, indicating that the company's debt in relation to its total capital has been on the rise over the years.

3. Debt-to-equity ratio:
- The debt-to-equity ratio has shown significant fluctuations, starting at 0.00 in 2020 and increasing substantially to 2.03 in 2022, before decreasing to 0.54 in 2024. This implies that Marathon Digital Holdings has significantly increased its debt relative to equity at one point but has since reduced this leverage.

4. Financial leverage ratio:
- The financial leverage ratio has shown a similar pattern to the debt ratios, increasing from 1.00 in 2020 to 3.10 in 2022 before decreasing to 1.65 in 2024. This suggests that the company has employed higher financial leverage in recent years but has made efforts to reduce it more recently.

Overall, the analysis of the solvency ratios of Marathon Digital Holdings Inc indicates fluctuations in leverage and debt management, with periods of increased indebtedness followed by efforts to reduce leverage over time. These ratios provide insights into the company's ability to meet its financial obligations in the long term and manage its debt levels effectively.

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Coverage ratios

Interest coverage ratio indicates the company's ability to cover its interest payments with its operating income. A higher ratio suggests better ability to meet interest obligations. Marathon Digital Holdings Inc has shown a significant improvement in its interest coverage ratio over the years. In 2020, the ratio was at -496.43 indicating a severe inability to cover interest expenses with operating income. However, the company has managed to strengthen its position, with the ratio improving to -8.25 in 2021, -46.30 in 2022, 27.82 in 2023, and 23.55 in 2024. Despite fluctuations, the positive trend in recent years shows a better ability to meet interest obligations compared to the previous years. Further monitoring of this ratio is advised to ensure the company's long-term financial health.