CleanSpark Inc (CLSK)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 2.73 | 33,681.60 | 4,871.30 | 127.97 | 11.61 | |
| DSO | days | 133.63 | 0.01 | 0.07 | 2.85 | 31.44 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.73
= 133.63
The data reveal a significant decline in the Days of Sales Outstanding (DSO) for CleanSpark Inc. from September 30, 2020, to September 30, 2023. Specifically, the DSO decreased from 31.44 days in 2020 to just 2.85 days in 2021, then further diminished to 0.07 days in 2022, and reached an almost negligible 0.01 days in 2023. This trend suggests a progressively more efficient collection process over this period, with the company converting receivables into cash at an increasingly rapid rate.
However, the data for September 30, 2024, indicate a drastic shift, with the DSO rising sharply to 133.63 days. Such a substantial increase represents a notable anomaly compared to historical values. It could indicate potential issues such as extended credit terms, delays in collection, or changes in the company's credit policies. This spike also warrants further investigation to understand whether it results from operational disruptions, accounting adjustments, or other external factors impacting receivables management.
In summary, the observed trend initially signifies enhanced efficiency and effectiveness in receivables collection over the first three years. Conversely, the abrupt increase in 2024 suggests a possible deterioration in collection performance or a strategic shift affecting receivables, highlighting a critical area for financial scrutiny.
Peer comparison
Sep 30, 2024