Marathon Digital Holdings Inc (MARA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,990,970 | 1,195,240 | 1,444,330 | 313,251 | 6,620 |
| Total stockholders’ equity | US$ in thousands | 1,615,920 | 385,941 | 682,100 | 311,745 | 3,648 |
| Financial leverage ratio | 1.23 | 3.10 | 2.12 | 1.00 | 1.81 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,990,970K ÷ $1,615,920K
= 1.23
The financial leverage ratio of Marathon Digital Holdings Inc has fluctuated over the past five years. It stood at 1.23 in 2023, indicating that the company's reliance on debt to finance its operations has decreased compared to the previous year. In 2022, the ratio was significantly higher at 3.10, suggesting a significant increase in debt utilization. This could imply higher financial risk and interest expense for the company.
In 2021, the financial leverage ratio was 2.12, reflecting a moderate level of debt in the company's capital structure. The ratio was at its lowest point in 2020 at 1.00, indicating a conservative financial leverage strategy with minimal debt usage.
In 2019, the ratio was 1.81, showing a moderate level of leverage similar to 2021. Overall, the trend in Marathon Digital Holdings Inc's financial leverage ratio indicates varying levels of debt utilization over the years, with the company employing different strategies to finance its operations. The recent decrease in the ratio may signal a more conservative approach to debt management.
Peer comparison
Dec 31, 2023