CleanSpark Inc (CLSK)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -145,777 | -138,148 | -57,662 | -21,812 | -23,346 |
| Total stockholders’ equity | US$ in thousands | 1,760,840 | 677,227 | 404,012 | 305,716 | 16,426 |
| ROE | -8.28% | -20.40% | -14.27% | -7.13% | -142.13% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-145,777K ÷ $1,760,840K
= -8.28%
The analyzed data presents the return on equity (ROE) for CleanSpark Inc across five fiscal periods, spanning from September 2020 through September 2024. The ROE values are notably negative throughout this timeframe, indicating that the company has consistently experienced losses relative to shareholders' equity.
In September 2020, the ROE was recorded at -142.13%, which reflects a substantial negative return, suggesting that the company was incurring significant losses or efficiently destroyed shareholder equity during that period. The dramatic negative figure could also imply high expenses, poor profitability, or other underlying operational challenges.
By September 2021, the ROE improved markedly to -7.13%. This suggests a significant reduction in losses or an improvement in profitability, potentially due to operational restructuring, better sales performance, or cost control measures. However, despite the improvement, the ROE remained negative, signifying that the company was still unable to generate positive returns for shareholders.
In September 2022, the ROE reverted to -14.27%, indicating a deterioration relative to the previous year. This regression might point to a decline in profitability or increased expenses offsetting gains from operations, or other factors impacting overall profitability.
The trend continues with September 2023 showing an increased negative ROE of -20.40%, further signaling challenges in achieving profitable operations or effective return generation relative to equity. Such a decline in ROE suggests that despite previous improvements, the company faced renewed or ongoing difficulties in creating shareholder value.
By September 2024, the ROE narrows to -8.28%. Although still negative, this indicates a noteworthy improvement from the -20.40% seen in the prior year. This progress could be attributable to operational improvements, revenue growth, cost reductions, or strategic initiatives aimed at restoring profitability.
Overall, across the specified periods, CleanSpark Inc's ROE exhibits persistent negative values, reflecting ongoing challenges in generating profits relative to shareholders' equity. The fluctuations suggest intermittent periods of operational improvement, yet the company has continually struggled to achieve positive or even near-zero ROE, highlighting a pattern of losses or inefficient use of equity capital over the analyzed timeframe.
Peer comparison
Sep 30, 2024