Marathon Digital Holdings Inc (MARA)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.17 | 0.67 | 0.52 | 0.00 | 0.21 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $325,654K ÷ ($325,654K + $1,615,920K)
= 0.17
The debt-to-capital ratio of Marathon Digital Holdings Inc has fluctuated over the past five years. In 2023, the ratio stands at 0.17, indicating that the company has a relatively low level of debt compared to its total capital structure. This suggests that the company has a strong ability to meet its debt obligations using its available capital.
In comparison, the ratio was significantly higher in 2022 at 0.67, which may have raised concerns about the company's leverage and ability to repay its debts. However, there was a decrease in the ratio in 2023, reflecting a potentially improved financial position and reduced reliance on debt financing.
Looking further back, in 2021, the debt-to-capital ratio was 0.52, showing a moderate level of debt relative to capital. In 2020, the ratio was 0.00, indicating that there was no debt in the capital structure that year. In 2019, the ratio was 0.21, suggesting a relatively stable financial position with a modest level of debt.
Overall, the trend in Marathon Digital Holdings Inc's debt-to-capital ratio reflects varying levels of leverage and financial risk over the past five years. The decreasing trend from 2022 to 2023 indicates a potentially improved financial position, while the fluctuations in previous years suggest changes in the company's debt management and capital structure strategy.
Peer comparison
Dec 31, 2023