Marathon Digital Holdings Inc (MARA)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.11 | 0.16 | 0.24 | 0.53 | 0.56 | 0.65 | 0.53 | 0.48 | 0.47 | 0.50 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.18 | 0.15 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.12 | 0.17 | 0.24 | 0.55 | 0.57 | 0.67 | 0.56 | 0.53 | 0.48 | 0.52 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.24 | 0.21 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.13 | 0.20 | 0.32 | 1.24 | 1.34 | 2.03 | 1.25 | 1.11 | 0.94 | 1.07 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.32 | 0.27 | 0.00 | 0.00 |
| Financial leverage ratio | 1.19 | 1.23 | 1.36 | 2.31 | 2.39 | 3.10 | 2.36 | 2.29 | 1.99 | 2.12 | 1.01 | 1.01 | 1.00 | 1.00 | 1.03 | 1.11 | 1.79 | 1.81 | 2.20 | 2.40 |
Based on the solvency ratios of Marathon Digital Holdings Inc over the past few quarters, there are notable fluctuations in the company's financial leverage and debt ratios. The debt-to-assets ratio has been decreasing from 0.56 in March 2023 to 0.11 in March 2024, indicating a significant improvement in the company's ability to cover its liabilities with assets.
Similarly, the debt-to-capital ratio shows a decreasing trend from 0.57 in March 2023 to 0.12 in March 2024, reflecting a lower reliance on debt for financing the company's operations. The debt-to-equity ratio has also declined over the period, demonstrating a decrease in the company's debt relative to its equity.
However, it is important to note that, despite the improvements in these ratios, there were instances where the company had no debt or very low debt levels, as evidenced by the zero values in some quarters. This may have skewed the ratios and should be taken into consideration when evaluating the company's overall solvency position.
Overall, the financial leverage ratio, which measures the company's reliance on debt, has shown fluctuations but has generally trended downwards since March 2023, indicating a decreasing level of financial risk. It is crucial for investors and stakeholders to closely monitor these solvency ratios to assess the company's ability to meet its financial obligations and manage its debt effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio of Marathon Digital Holdings Inc has fluctuated significantly over the periods provided. For the most recent quarter, ending March 31, 2024, the interest coverage ratio stands at 85.12, indicating a strong ability to cover interest expenses with operating income. This suggests a healthy financial position and lower risk of default.
However, looking back at previous quarters, the company faced challenges in meeting interest obligations. For instance, the interest coverage ratio was negative in several quarters, such as in September 2023, June 2023, and March 2023. This implies that the company's operating income was insufficient to cover its interest expenses during those periods, raising concerns about its financial health and ability to service debt.
It is notable that the interest coverage ratio improved significantly in recent quarters compared to the drastic negative ratios seen in 2021. Despite the fluctuations, investors and creditors would closely monitor the company's ability to generate income to cover interest payments consistently in the long term.