Marathon Digital Holdings Inc (MARA)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.33 | 0.17 | 0.10 | 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 |
| Debt-to-capital ratio | 0.35 | 0.18 | 0.11 | 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 |
| Debt-to-equity ratio | 0.54 | 0.22 | 0.12 | 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 |
| Financial leverage ratio | 1.65 | 1.25 | 1.18 | 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 |
Marathon Digital Holdings Inc's solvency ratios have shown fluctuations over the past few years.
The Debt-to-assets ratio has been relatively low in the past, but it saw a significant increase from 0.16 as of December 31, 2023, to 0.33 as of December 31, 2024, indicating an increase in the proportion of debt to assets.
Similarly, the Debt-to-capital ratio has also shown an upward trend, reaching 0.35 as of December 31, 2024, compared to 0.17 as of December 31, 2023, suggesting an increasing reliance on debt relative to the capital structure.
The Debt-to-equity ratio has followed a similar pattern, rising from 0.20 as of December 31, 2023, to 0.54 as of December 31, 2024. This indicates that the company's debt level has been increasing in relation to equity.
The Financial leverage ratio has also been on the rise, reaching 1.65 as of December 31, 2024, from 1.23 as of December 31, 2023. This suggests that the company has been utilizing more debt to finance its operations, leading to higher financial leverage.
Overall, the increasing trend in these solvency ratios indicates that Marathon Digital Holdings Inc's financial risk has been on the rise, as the company is becoming more leveraged and reliant on debt to support its operations and growth. Investors and stakeholders should closely monitor these ratios to assess the company's ability to meet its debt obligations in the long term.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 24.08 | 34.39 | 70.83 | 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 |
The interest coverage ratio reflects Marathon Digital Holdings Inc's ability to meet its interest obligations with its operating income. A higher ratio indicates that the company is more capable of covering its interest expenses.
Looking at the historical data provided, the interest coverage ratio for Marathon Digital Holdings Inc was negative for the most part from March 2020 to June 2022. This suggests that during these periods, the company was not generating sufficient operating income to cover its interest expenses.
However, starting from March 2023, the interest coverage ratio improved significantly and turned positive. This positive trend continued through December 2024, indicating that the company's operating income was more than sufficient to cover its interest obligations during these periods.
It is worth noting that there were fluctuations in the interest coverage ratio over the years, with some quarters showing strong improvements while others showing declines or remaining negative. Overall, the positive trend in recent quarters suggests an improvement in Marathon Digital Holdings Inc's ability to meet its interest payments using its operating income.