CleanSpark Inc (CLSK)
Interest coverage
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -189,689 | 89,735 | -139,937 | -146,433 | 85,436 | -70,787 | -128,202 | -100,631 | -103,545 | -84,138 | -38,921 | -703 | 1,538 | 6,780 | -16,107 | -21,096 | -9,184 | -18,738 | -14,540 | -10,303 |
| Interest expense (ttm) | US$ in thousands | 4,209 | 3,468 | 2,455 | 2,157 | 2,361 | 2,634 | 2,977 | 3,080 | 2,705 | 1,914 | 1,078 | 409 | 114 | 134 | 82 | 116 | 7,163 | 9,026 | 10,585 | 12,804 |
| Interest coverage | -45.07 | 25.88 | -57.00 | -67.89 | 36.19 | -26.87 | -43.06 | -32.67 | -38.28 | -43.96 | -36.10 | -1.72 | 13.49 | 50.60 | -196.43 | -181.86 | -1.28 | -2.08 | -1.37 | -0.80 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-189,689K ÷ $4,209K
= -45.07
The interest coverage ratio of CleanSpark Inc. exhibits significant volatility and has generally been negative over the period analyzed, indicating recurrent difficulties in covering interest expenses with operating earnings. From June 30, 2020, through December 31, 2021, the company’s interest coverage was adversely affected, with ratios trending deeper into negative territory, reaching as low as -196.43 in September 2021. This persistent negative trend suggests that, during this period, the company's earnings before interest and taxes (EBIT) were insufficient to meet interest obligations, potentially highlighting financial distress or operational challenges.
An exception occurred at the end of 2021, when the ratio turned positive at 50.60, indicating a temporary improvement where operating earnings exceeded interest expenses, although subsequent quarters again reflected negative ratios. Throughout 2022 and early 2023, the ratios remained predominantly below zero, with notable lows such as -43.96 in December 2022 and -38.28 in March 2023, reaffirming ongoing struggles to generate sufficient earnings to cover interest liabilities.
In the most recent periods, there are signs of potential improvement. The data shows a positive interest coverage ratio of 36.19 in March 2024, suggesting a possible recovery in earnings relative to interest expenses. However, this positive result was not sustained, as the ratio reverted to negative figures afterward (-67.89 in June 2024, -57.00 in September 2024, and -45.07 in March 2025). The fluctuating nature of these ratios indicates volatility in CleanSpark Inc.’s earnings performance and continued challenges in consistently meeting its interest obligations.
Overall, the historical pattern of predominantly negative interest coverage ratios signifies financial risk and indicates that the company has often operated with earnings insufficient to cover interest expenses. The sporadic positive ratios suggest periods of improved earnings but are not consistent or sustained, pointing to ongoing operational and financial challenges.
Peer comparison
Mar 31, 2025