CleanSpark Inc (CLSK)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 378,968 | 168,408 | 131,525 | 39,287 | 10,029 |
| Total current assets | US$ in thousands | 705,430 | 102,172 | 50,776 | 57,726 | 8,252 |
| Total current liabilities | US$ in thousands | 187,887 | 74,055 | 34,041 | 10,063 | 5,383 |
| Working capital turnover | 0.73 | 5.99 | 7.86 | 0.82 | 3.50 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $378,968K ÷ ($705,430K – $187,887K)
= 0.73
The analysis of CleanSpark Inc’s working capital turnover over the period from September 30, 2020, to September 30, 2024, reveals notable fluctuations in the metric, indicating evolving operational efficiency related to working capital management.
In September 2020, the company demonstrated a working capital turnover ratio of 3.50, suggesting that for each dollar of working capital employed, there was approximately $3.50 in sales, reflecting relatively efficient utilization of working capital. However, by September 30, 2021, the ratio declined sharply to 0.82, indicating a significant decrease in the efficiency of working capital utilization, potentially due to increased balances of current assets or reduced sales relative to working capital.
The subsequent year, September 30, 2022, saw a substantial rebound, with the ratio rising to 7.86. This sharp increase suggests a period of improved operational efficiency, where the company was able to generate a higher level of sales per dollar of working capital. Such a rise could be attributed to effective working capital management, increased sales activity, or both.
In the following year, the ratio moderated to 5.99 as of September 30, 2023, still indicating relatively high efficiency, although below the peak observed in 2022. This suggests a stabilization after the prior spike, possibly reflecting normalization of working capital or changes in sales volume.
By September 30, 2024, the working capital turnover ratio sharply declined again to 0.73, approaching levels similar to those noted in 2021. This significant drop indicates a decline in operational efficiency, meaning that the company was able to generate considerably less sales per dollar of working capital, which might be due to increased working capital levels, decreased sales, or both.
Overall, the trend demonstrates substantial volatility in working capital management efficiency, with a peak in 2022 followed by declines, culminating in a level near the initial periods. These fluctuations underscore the importance of effective working capital policies and operational strategies to sustain consistent sales generation relative to working capital invested.
Peer comparison
Sep 30, 2024