CleanSpark Inc (CLSK)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,962,660 | 761,578 | 452,625 | 317,473 | 22,340 |
| Total stockholders’ equity | US$ in thousands | 1,760,840 | 677,227 | 404,012 | 305,716 | 16,426 |
| Financial leverage ratio | 1.11 | 1.12 | 1.12 | 1.04 | 1.36 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,962,660K ÷ $1,760,840K
= 1.11
The financial leverage ratio of CleanSpark Inc. demonstrates notable fluctuations over the analyzed period from September 30, 2020, to September 30, 2024. Starting at a level of 1.36 in 2020, the ratio declined substantially to 1.04 by September 30, 2021, indicating a reduction in the company’s reliance on debt relative to its equity. This decrease suggests that the firm may have been actively managing its leverage to decrease financial risk or improved its equity position during this period.
From September 2021 onward, the financial leverage ratio increased modestly to 1.12 in 2022 and remained steady at this level through 2023, implying a stabilization of the company's capital structure. The slight decrease to 1.11 in 2024 suggests minimal variation in leverage levels, pointing to a relatively consistent approach to leveraging debt relative to equity during the recent year.
Overall, the trend indicates that CleanSpark Inc. reduced its financial leverage markedly in the early period but has maintained a stable, moderate leverage ratio in recent years. This pattern reflects a cautious approach to debt utilization, potentially aimed at balancing the benefits of leverage with the associated risks, and may signal a strategic shift toward financial stability.
Peer comparison
Sep 30, 2024