CleanSpark Inc (CLSK)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 121,222 | 29,215 | 20,463 | 14,571 | 3,126 |
| Short-term investments | US$ in thousands | 432,579 | 56,967 | 11,757 | 24,359 | 960 |
| Total current liabilities | US$ in thousands | 187,887 | 74,055 | 34,041 | 10,063 | 5,383 |
| Cash ratio | 2.95 | 1.16 | 0.95 | 3.87 | 0.76 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($121,222K
+ $432,579K)
÷ $187,887K
= 2.95
The cash ratio of CleanSpark Inc has exhibited notable fluctuations over the analyzed period from September 30, 2020, to September 30, 2024.
As of September 30, 2020, the cash ratio stood at 0.76, indicating that the company's cash and cash equivalents covered approximately 76% of its current liabilities, reflecting a moderate liquidity position. By September 30, 2021, the ratio surged to 3.87, signifying a substantial improvement in liquidity, whereby the company's cash reserves more than tripled relative to its current liabilities, suggesting a conservative cash management approach or increased liquidity buffer.
However, this elevated position was not maintained, as the ratio declined to 0.95 by September 30, 2022, approaching a more balanced liquidity stance, with cash nearly covering current liabilities. Subsequently, a slight increase was observed in 2023, with the ratio rising to 1.16, indicating a marginal improvement in liquidity, where cash reserves slightly exceeded current liabilities.
Most notably, by September 30, 2024, the cash ratio increased significantly to 2.95, almost tripling the previous year's figure. This considerable rise suggests a substantial influx or accumulation of cash relative to current liabilities, potentially reflecting improved cash flow, strategic cash conservation, or other liquidity-enhancing measures.
Overall, the trend indicates periods of rapid liquidity expansion coupled with some fluctuations. The sharp increase towards 2024 points to a strengthening liquidity position, with the company maintaining a robust cash reserve relative to its short-term obligations. The variations across the period reflect changing liquidity strategies and operational dynamics, but the recent data suggests an improved stance in maintaining sufficient liquidity for current liabilities.
Peer comparison
Sep 30, 2024