CleanSpark Inc (CLSK)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 2,455 | 2,977 | 1,078 | 146 | 10,759 |
| Interest coverage | -57.02 | -43.11 | -36.08 | -55.36 | -1.17 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-139,978K ÷ $2,455K
= -57.02
The interest coverage ratios for CleanSpark Inc. over the specified period reveal a persistent and significant challenge in meeting its interest obligations through operating income. As of September 30, 2020, the company’s interest coverage ratio was recorded at -1.17, indicating that operating income was insufficient to cover interest expenses, resulting in a slight negative coverage. This situation worsened markedly by September 30, 2021, when the ratio plummeted to -55.36, reflecting a substantial deterioration in the company's ability to generate sufficient operating income to cover interest payments. The negative trend continued through September 30, 2022, with a ratio of -36.08, and persisted further through September 30, 2023, at -43.11, signifying ongoing difficulties in covering interest costs from operational earnings. The forecast for September 30, 2024, indicates a further slight decline to -57.02, suggesting a continued or worsening inability of the company to generate adequate operating income to meet its interest obligations. Overall, the consistent negative interest coverage ratios over these periods denote a recurrent financial strain, highlighting concerns regarding the company's liquidity and solvency position, and suggesting that the firm has been heavily reliant on external financing or non-operational sources to meet interest payments.
Peer comparison
Sep 30, 2024