CleanSpark Inc (CLSK)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -139,978 | -128,326 | -38,899 | -8,083 | -12,587 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,760,840 | 677,227 | 404,012 | 305,716 | 16,426 |
| Return on total capital | -7.95% | -18.95% | -9.63% | -2.64% | -76.63% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-139,978K ÷ ($—K + $1,760,840K)
= -7.95%
The return on total capital (ROTC) for CleanSpark Inc over the period from September 30, 2020, to September 30, 2024, indicates a progressive improvement in financial performance, albeit remaining negative throughout the analyzed timeframe. Specifically, the ROTC was significantly negative at -76.63% as of September 30, 2020, reflecting substantial inefficiencies or challenges in generating returns on the total capital invested during that period. By September 30, 2021, the figure improved markedly to -2.64%, signaling a substantial reduction in negative returns and suggesting initial effectiveness of strategic or operational adjustments.
However, the trend encountered setbacks subsequently, with the ROTC decreasing again to -9.63% by September 30, 2022, and further to -18.95% on September 30, 2023. This decline indicates a deterioration in the ability to generate positive returns on total capital, possibly attributable to increased costs, lower margins, or investment challenges. Notably, the ROTC shows signs of recovery in the most recent period, improving to -7.95% as of September 30, 2024, which suggests a narrowing of the negative gap, potentially due to operational efficiencies, strategic repositioning, or favorable market conditions.
Despite these partial recoveries, the consistent negative ROTC underscores ongoing difficulties in achieving positive returns on total capital, emphasizing the need for sustained strategic interventions and operational improvements to move toward profitability and efficient capital utilization in the future.
Peer comparison
Sep 30, 2024