CleanSpark Inc (CLSK)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.32% | 17.29% | 37.54% | 32.69% | 21.15% |
| Operating profit margin | -39.33% | -77.81% | -28.79% | -30.28% | -150.99% |
| Pretax margin | -37.58% | -77.97% | -30.48% | -20.95% | -232.78% |
| Net profit margin | -38.47% | -82.03% | -43.84% | -55.52% | -232.78% |
The profitability ratios of CleanSpark Inc. over the period from September 2020 to September 2024 illustrate significant fluctuations, highlighting evolving operational performance and changing margins.
Gross Profit Margin: The gross profit margin experienced a notable increase from 21.15% in September 2020 to a peak of 37.54% in September 2022. This trend indicates an improvement in the company's ability to manage cost of goods sold relative to sales during this period. However, a substantial decline occurred in September 2023 to 17.29%, suggesting increased cost pressures or reductions in pricing power. Contrarily, a remarkable resurgence occurred in September 2024, with the gross margin soaring to 56.32%, which may reflect improved operational efficiencies, cost reductions, or favorable sales mix.
Operating Profit Margin: The operating profit margin consistently remained negative throughout the analyzed periods. The margin narrowed from a severe -150.99% in September 2020 to -30.28% in September 2021, indicating a substantial reduction in operating losses. Between September 2022 and September 2023, the margin remained negative, albeit less deep, with values of -28.79% and -77.81%, respectively. Notably, in September 2024, the operating margin improved further to -39.33%, although still operating at a loss, reflecting better control over operating costs relative to revenues.
Pre-Tax Margin: Similar to operating margins, pre-tax margins remained negative throughout the period, with the most substantial losses in September 2020 at -232.78%. The pre-tax margin improved markedly in September 2021 to -20.95%, indicating meaningful progress in pre-tax profitability. However, subsequent periods saw fluctuation, with margins worsening again in September 2023 to -77.97%. By September 2024, the pre-tax margin improved to -37.58%, suggesting progress toward reducing overall pre-tax losses, though the company has yet to attain profitability.
Net Profit Margin: The net profit margin, which reflects bottom-line profitability, followed a similar pattern. It was profoundly negative in September 2020 at -232.78% and improved significantly by September 2021 to -55.52%. Despite some fluctuations, the net margin remained negative, with the deepest loss observed in September 2023 at -82.03%. In September 2024, the net profit margin improved to -38.47%, indicating a narrowing of net losses, but the company has yet to achieve positive net profitability.
Overall, the data demonstrates that while CleanSpark Inc. has made progress in narrowing its losses over the period, sustained positive profitability has not yet been achieved. The sharp improvement in gross margin in 2024 offers a promising sign, potentially indicative of operational efficiencies or favorable shifts in revenue and cost structures. Nevertheless, persistent negative operating, pre-tax, and net margins suggest ongoing challenges in achieving operational and bottom-line profitability.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -7.59% | -17.21% | -8.37% | -3.75% | -67.78% |
| Return on assets (ROA) | -7.43% | -18.14% | -12.74% | -6.87% | -104.50% |
| Return on total capital | -7.95% | -18.95% | -9.63% | -2.64% | -76.63% |
| Return on equity (ROE) | -8.28% | -20.40% | -14.27% | -7.13% | -142.13% |
The profitability ratios of CleanSpark Inc. from September 30, 2020, through September 30, 2024, demonstrate an ongoing pattern of negative returns across all key metrics, indicating persistent unprofitability over this period.
The Operating Return on Assets (Operating ROA) shows a significant decline initially, with a sharp improvement from -67.78% in 2020 to -3.75% in 2021, approaching a breakeven level. However, it deteriorated again in subsequent years, reaching -8.37% in 2022, deepening further to -17.21% in 2023, before improving somewhat to -7.59% in 2024. This fluctuation signifies inconsistent operational efficiency, with recent signs of improved operating margins but still negative overall.
Return on Assets (ROA), which accounts for all income sources relative to total assets, mirrors this trend but remains more negative overall. It notably declined from -104.50% in 2020 to -6.87% in 2021, indicating a significant improvement, but thereafter worsened to -12.74% in 2022 and further to -18.14% in 2023, before a slight recovery to -7.43% in 2024. The persistent negativity reflects continued challenges in asset utilization for generating net income.
Return on Total Capital also exhibits a negative pattern, moving from -76.63% in 2020 to -2.64% in 2021, then worsening again to -9.63% in 2022 and deepening in subsequent years to -18.95% in 2023, slightly improving to -7.95% in 2024. This indicates that the company's returns on overall invested capital remain below breakeven, with fluctuating profitability metrics suggesting ongoing difficulties in efficiently deploying capital to generate earnings.
Return on Equity (ROE) remains markedly negative throughout the period, from -142.13% in 2020 to -7.13% in 2021, demonstrating a substantial reduction in the negative return. Nevertheless, the figures worsened again in 2022 (-14.27%) and 2023 (-20.40%), before partially recovering to -8.28% in 2024. The persistent negative ROE underscores continued struggles to generate net income relative to shareholders’ equity, though the trend indicates some improvement in recent years.
Overall, the profitability ratios reveal that despite some periods of marginal improvement, CleanSpark Inc. continues to operate at a loss across all major profitability metrics. The company demonstrates volatile performance with a recent moderate trend toward narrowing losses, yet it remains unprofitable on an operational, asset, capital, and shareholder equity basis.