Marathon Digital Holdings Inc (MARA)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 7,846 | 10,350 | 13,802 | 15,018 | 15,926 | 14,980 | 11,881 | 8,129 | 4,382 | 1,569 | 2 | 2 | 9 | 21 | 36 | 49 | 53 | 52 | 50 | 56 |
| Interest coverage | 85.12 | 27.82 | -26.30 | -33.60 | -43.10 | -46.93 | -21.72 | -25.27 | -26.54 | -8.25 | -26,321.00 | -16,230.50 | 8,292.56 | -467.52 | -182.86 | -110.14 | -82.02 | -81.54 | -138.98 | -136.36 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $667,829K ÷ $7,846K
= 85.12
The interest coverage ratio for Marathon Digital Holdings Inc fluctuated significantly over the period analyzed. The ratio indicates the company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio is generally preferred as it suggests that the company is more capable of servicing its interest payments.
In the most recent quarter, as of March 31, 2024, the interest coverage ratio improved significantly to 85.12, indicating a strong ability to cover interest expenses. This marked improvement suggests that the company's operating income has increased substantially, providing a comfortable cushion to meet its interest obligations.
However, looking at the historical data, there were several quarters where the interest coverage ratio was negative, signaling that the company's operating income was not sufficient to cover its interest expenses during those periods. This could indicate financial distress and potential difficulty in meeting debt obligations.
It is important for stakeholders to monitor the company's interest coverage ratio closely to ensure that it remains at a healthy level, indicating a sustainable financial position. Further analysis of the company's profitability, cash flow, and debt levels would provide a more complete picture of its overall financial health.
Peer comparison
Mar 31, 2024