CleanSpark Inc (CLSK)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.41 | 1.37 | 1.11 | 1.05 | 1.05 | 1.06 | 1.12 | 1.08 | 1.12 | 1.14 | 1.12 | 1.09 | 1.06 | 1.06 | 1.04 | 1.06 | 1.03 | 1.09 | 1.36 | 1.12 |
The solvency ratios for CleanSpark Inc., as reflected in the provided data, demonstrate the company's conservative capital structure during the period analyzed. Notably, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio are consistently reported as zero across all quarters from June 30, 2020, through March 31, 2025. This pattern indicates that the company has not employed debt financing within this timeframe, relying entirely on equity or other non-debt sources for its capital needs.
The persistent absence of leverage, as evidenced by these ratios, suggests that CleanSpark Inc. maintains a debt-free financial stance. Such a strategy typically implies minimal or no exposure to interest obligations, reducing financial risk associated with debt servicing. Furthermore, this approach can enhance liquidity and financial flexibility, especially in volatile market conditions.
Additionally, the financial leverage ratio fluctuates between 1.03 and 1.41 over the analyzed period, averaging slightly above 1.1. Because the leverage ratio is calculated as total assets divided by equity, this indicates that the company's total assets are marginally higher than its equity base, primarily due to non-debt aspects such as retained earnings or issuance of equity. The relatively stable and moderate leverage ratios reinforce the inference that the company's capital structure is predominantly equity-funded, with negligible reliance on debt.
Overall, these ratios collectively point to a position of high solvency, characterized by no current leverage from debt obligations, which minimizes solvency risk but also suggests that the company's growth and operational scale may primarily depend on its equity capital and internal funding sources.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for CleanSpark Inc. from June 30, 2020, through March 31, 2025, demonstrates significant variability and ongoing instability. Initially, during the fiscal periods ending June 30, 2020, through March 31, 2021, the company reported negative interest coverage ratios, indicating that earnings before interest and taxes (EBIT) were insufficient to cover interest expenses. Notably, the ratios deteriorated markedly in the periods ending June 30, 2021, and September 30, 2021, with ratios reaching extremely negative figures of -181.86 and -196.43, respectively. These figures suggest an almost complete inability to meet interest obligations through operational earnings, likely due to substantial non-recurring losses, high interest expenses, or both.
The situation improved significantly by December 31, 2021, when the ratio turned positive at 50.60, signaling a period where earnings were sufficient to cover interest expenses comfortably. This improvement persisted into the first quarter of 2022 with a ratio of 13.49. However, from June 30, 2022, onwards, the ratios reverted to negative territory, with ratios reaching as low as -43.96 at December 31, 2022, and remaining predominantly negative in subsequent periods. The continued negative ratios imply that, during these periods, the company’s operating earnings failed to cover interest expenses, suggesting ongoing financial challenges.
A notable deviation from this negative trend occurs in the quarter ending March 31, 2024, when the interest coverage ratio turns positive at 36.19, indicating a period where earnings again surpassed interest obligations. Nevertheless, this positive development was short-lived, as subsequent periods show ratios fluctuating back into negative values, including -67.89 in June 2024 and -57.00 in September 2024. The ratio then again transitions into positive territory at the end of 2024, with a value of 25.88, before reverting to a negative ratio of -45.07 in March 2025.
Overall, the interest coverage data reflects a pattern of persistent difficulty in generating sufficient earnings to cover interest expenses, punctuated by intermittent periods of apparent improvement. The volatility and recurrent negative ratios exemplify the company's ongoing financial instability and the potential risk associated with servicing debt obligations.