Marathon Digital Holdings Stock Beneish M Score

MARA Stock  USD 26.92  1.95  7.81%   
This module uses fundamental data of Marathon Digital to approximate the value of its Beneish M Score. Marathon Digital M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Marathon Digital Piotroski F Score and Marathon Digital Altman Z Score analysis.
  
At present, Marathon Digital's Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Debt To Equity is expected to grow to 0.39, whereas Short and Long Term Debt Total is forecasted to decline to about 190.5 M. At present, Marathon Digital's PTB Ratio is projected to increase significantly based on the last few years of reporting. The current year's PB Ratio is expected to grow to 2.81, whereas Price To Sales Ratio is forecasted to decline to 10.59.
At this time, Marathon Digital's M Score is unavailable. The earnings manipulation may begin if Marathon Digital's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Marathon Digital executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Marathon Digital's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-1.7
Beneish M Score - Unavailable
Elasticity of Receivables

0.9

Focus
Asset Quality

1.0

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.05

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

2.15

Focus

Marathon Digital Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Marathon Digital's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Total Assets2.1 BB
Sufficiently Up
Slightly volatile
Total Current Assets1.1 BB
Sufficiently Up
Slightly volatile
Non Current Assets TotalB961.2 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization188.5 M179.5 M
Sufficiently Up
Slightly volatile
Selling General Administrative100 M95.2 M
Sufficiently Up
Slightly volatile
Total Current Liabilities35.4 M33.8 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total175.9 M341.3 M
Way Down
Slightly volatile
Short Term Debt235.6 K248 K
Notably Down
Pretty Stable

Marathon Digital Holdings Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Marathon Digital's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Marathon Digital in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Marathon Digital's degree of accounting gimmicks and manipulations.

About Marathon Digital Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

188.49 Million

At present, Marathon Digital's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

Marathon Digital ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Marathon Digital's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Marathon Digital's managers, analysts, and investors.
Environmental
Governance
Social

About Marathon Digital Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Marathon Digital Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Marathon Digital using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Marathon Digital Holdings based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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When determining whether Marathon Digital Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Marathon Digital's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Marathon Digital Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Marathon Digital Holdings Stock:
Check out Marathon Digital Piotroski F Score and Marathon Digital Altman Z Score analysis.
You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Marathon Digital. If investors know Marathon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Marathon Digital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.764
Earnings Share
0.83
Revenue Per Share
2.257
Quarterly Revenue Growth
0.345
Return On Assets
(0.01)
The market value of Marathon Digital Holdings is measured differently than its book value, which is the value of Marathon that is recorded on the company's balance sheet. Investors also form their own opinion of Marathon Digital's value that differs from its market value or its book value, called intrinsic value, which is Marathon Digital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Marathon Digital's market value can be influenced by many factors that don't directly affect Marathon Digital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Marathon Digital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Marathon Digital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Marathon Digital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.