CleanSpark Inc (CLSK)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 138,746 | 5 | 27 | 307 | 864 |
| Total current liabilities | US$ in thousands | 187,887 | 74,055 | 34,041 | 10,063 | 5,383 |
| Quick ratio | 3.69 | 1.16 | 0.95 | 3.90 | 0.92 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($121,222K
+ $432,579K
+ $138,746K)
÷ $187,887K
= 3.69
The quick ratio of CleanSpark Inc. has exhibited notable fluctuations over the analyzed period from September 30, 2020, to September 30, 2024.
In September 2020, the quick ratio stood at 0.92, indicating that the company's liquid assets were slightly insufficient to cover its current liabilities, reflecting a potentially tight liquidity position. By September 2021, the ratio increased substantially to 3.90, suggesting a significant improvement in liquidity, with liquid assets exceeding current liabilities by nearly four times, which could imply enhanced cash holdings, accounts receivable, or other liquid assets relative to short-term obligations.
Following this peak, the quick ratio declined sharply to 0.95 as of September 2022, returning close to the 2020 level, signaling a potential reduction in liquid assets or an increase in current liabilities. This decline may point to a normalization or a strategic deployment of liquidity, requiring further investigation into balance sheet changes during this period.
The ratio then increased modestly to 1.16 in September 2023, indicating a marginal improvement in liquidity position, with the company's liquid assets comfortably covering its current liabilities but remaining relatively close to a point of balance.
Most recently, by September 2024, the quick ratio further strengthened to 3.69, approaching the previous peak from 2021. This suggests a substantial accumulation of liquid assets relative to current liabilities, implying an improved liquidity position and potentially greater financial flexibility.
Overall, the trend in CleanSpark Inc.'s quick ratio reflects periods of significant liquidity strengthening, punctuated by fluctuations that may correspond to operational, strategic, or financing activities. The current higher ratios imply a relatively conservative liquidity stance as of September 2024 compared to the earlier years, indicating improved short-term financial stability, albeit with the need for context around asset composition and liability management for a comprehensive interpretation.
Peer comparison
Sep 30, 2024