Marathon Digital Holdings Inc (MARA)
Debt-to-equity 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-equity ratio | 0.20 | 2.03 | 1.07 | 0.00 | 0.27 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $325,654K ÷ $1,615,920K
= 0.20
The debt-to-equity ratio of Marathon Digital Holdings Inc has exhibited significant fluctuations over the past five years. In particular, there was a substantial increase in the ratio from 0.00 in 2020 to 2.03 in 2022, indicating a higher reliance on debt to finance its operations relative to shareholder equity during that period.
However, the company substantially reduced its debt levels in the subsequent years, with the ratio decreasing to 1.07 in 2021 and further to 0.20 in 2023. These improvements suggest a shift towards a more balanced capital structure, with a greater proportion of funding coming from equity rather than debt in recent years.
It is noteworthy that the debt-to-equity ratio was at a moderate level in 2019 at 0.27, indicating a reasonable mix of debt and equity financing at that time. Overall, the trend in the debt-to-equity ratio reflects the company's efforts to optimize its capital structure and manage its debt levels effectively over the analyzed period.
Peer comparison
Dec 31, 2023