CleanSpark Inc (CLSK)

The inventory turnover ratio for CleanSpark Inc. demonstrates significant fluctuations over the specified period. As of September 30, 2020, the ratio was 31.89, indicating that inventory was sold and replaced approximately 32 times during that fiscal year. This relatively moderate turnover suggests a balanced inventory management approach at that time.

Between September 30, 2021, and September 30, 2022, the ratio experienced a substantial increase, reaching 330.56 and then slightly advancing to 380.34, respectively. These elevated figures imply a considerable acceleration in inventory sales, reflecting either increased sales efficiencies, improved inventory management practices, or changes in the company's operational strategy that facilitated faster turnover.

However, in the subsequent year ending September 30, 2023, the inventory turnover ratio declined markedly to 172.18. Although still substantially higher than the 2020 level, this decrease indicates a reduction in the frequency of inventory replacement, which could be attributed to a variety of factors such as inventory buildup, supply chain adjustments, or shifts in sales volume.

As of September 30, 2024, data is unavailable, indicated by a dash, suggesting that either the latest data has not been reported or calculated at the time of analysis.

Overall, the pattern of inventory turnover ratios indicates periods of rapid inventory movement interspersed with a rebound to lower but still elevated levels. The substantial increase from 2020 through 2022 followed by a notable decrease in 2023 merits further investigation into underlying causes—whether operational, strategic, or market-driven—to better understand the company's inventory management efficiencies and sales performance trends over this timeframe.

Peer comparison

Sep 30, 2024