CleanSpark Inc (CLSK)
Cash conversion cycle
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 3.00 | 2.32 | 1.86 | 2.47 | 2.89 | 2.30 | 1.36 | 0.87 | — | 20.24 | 33.60 | 2.59 | 283.85 | 45.01 | 12.15 | 11.50 | — |
| Days of sales outstanding (DSO) | days | — | — | 133.63 | 49.15 | — | — | 0.01 | 0.26 | 0.13 | 0.09 | 0.07 | 0.28 | 22.01 | 20.01 | 2.27 | 35.22 | 40.64 | 52.47 | 31.44 | 61.26 |
| Number of days of payables | days | 12.96 | 37.38 | 135.97 | 110.26 | 102.25 | 84.97 | 199.89 | 82.49 | 96.59 | 97.07 | 99.76 | 118.82 | 343.81 | 474.80 | 226.46 | 698.45 | 154.95 | 128.83 | 210.01 | 57.11 |
| Cash conversion cycle | days | -12.96 | -37.38 | -2.33 | -58.11 | -99.92 | -83.11 | -197.42 | -79.34 | -94.15 | -95.62 | -98.81 | -118.54 | -301.56 | -421.19 | -221.60 | -379.38 | -69.30 | -64.20 | -167.06 | 4.15 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – 12.96
= -12.96
The analysis of CleanSpark Inc.'s cash conversion cycle (CCC) over the observed period indicates significant variability, with a trend toward continued negative values. Initially, in June 2020, the CCC was positive at approximately 4.15 days, suggesting a scenario where the company's cash conversion process was relatively balanced, with the cash outflow lagging behind receivables collection and inventory turnover.
Subsequently, the CCC shifted dramatically negative starting from September 2020, reaching a peak in negativity of approximately -379.38 days in June 2021. This negative cycle duration suggests that the company is effectively collecting cash from sales well ahead of paying its suppliers, and possibly holding minimal inventory or operating with rapid receivables turnover. The pronounced negativity persisted through 2021 and 2022, with values fluctuating but remaining substantially below zero, indicating a consistent pattern of cash inflows outpacing cash outflows.
Throughout 2022 and into 2023, the CCC remained negative, with values such as -95.62 days at the end of 2022 and -94.15 days in March 2023, maintaining a pattern of rapid cash collection relative to payments. The trend shows periods of slight improvement, but the cycle remains predominantly negative, reflecting a potentially robust cash position facilitated by a quick collection process and efficient working capital management.
In the more recent quarters of 2023 and early 2024, the negative CCC persisted, albeit with some oscillation. For instance, by September 2023, the CCC increased to -197.42 days, indicating more extended periods before cash inflows surpass outflows, but still remaining negative. As of December 2024 and March 2025, the CCC remains negative at -37.38 days and -12.96 days, respectively, illustrating a decreasing negativity that could suggest a gradual shift toward a less abrupt cash conversion cycle, yet it continues to favor faster collections than payments.
Overall, the data reveals that CleanSpark Inc. maintains a consistently negative cash conversion cycle, which is atypical for many firms but common among companies with rapid receivables turnover and optimized working capital strategies. The trend towards less negative values over time may indicate an evolving cash management approach or changing operational efficiencies, but the persistent negativity underscores a reliance on swift cash inflows relative to outflows, which could have implications for liquidity management and operational resilience.
Peer comparison
Mar 31, 2025