Sunrun Inc (RUN)

Short-term

Turnover ratios

Sunrun Inc's activity ratios provide insights into the efficiency of the company's management of its assets and liabilities.

1. Inventory Turnover:
- Sunrun's inventory turnover has shown a consistent improvement over the years, indicating that the company is managing its inventory more efficiently.
- The ratio increased from 2.48 in 2019 to 4.56 in 2023, which suggests that the company is selling its inventory at a faster rate.

2. Receivables Turnover:
- The receivables turnover ratio has also been on an upward trend, indicating that Sunrun is collecting its receivables more quickly.
- The ratio rose from 11.05 in 2019 to 13.14 in 2023, showing improved efficiency in collecting payments from customers.

3. Payables Turnover:
- Sunrun's payables turnover ratio has shown a consistent increase, reflecting the company's ability to manage its accounts payable effectively.
- The ratio has increased from 2.89 in 2019 to 9.09 in 2023, indicating that the company is paying its suppliers at a faster rate.

4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively Sunrun is using its working capital to generate sales.
- Sunrun's ratio has increased from 4.21 in 2019 to 5.73 in 2023, indicating that the company is generating more revenue per dollar of working capital.

Overall, the increasing trend in all these activity ratios suggests that Sunrun Inc is operating more efficiently and effectively utilizing its resources to drive sales and manage its working capital and payables.

---

Average number of days

The activity ratios of Sunrun Inc have shown some fluctuations over the past five years.

1. Days of Inventory on Hand (DOH): Sunrun Inc has been able to reduce its Days of Inventory on Hand from 147.27 days in 2019 to 80.03 days in 2023. This indicates that the company has been able to manage its inventory more efficiently and is taking fewer days to sell its inventory.

2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding have shown a declining trend over the years, indicating that Sunrun Inc is collecting its accounts receivable more quickly. The DSO decreased from 33.04 days in 2019 to 27.78 days in 2023.

3. Number of Days of Payables: Sunrun Inc has effectively managed its Number of Days of Payables, reducing it from 126.23 days in 2019 to 40.16 days in 2023. This indicates that the company is taking fewer days to pay its suppliers, potentially improving its cash flow position.

Overall, the trend in activity ratios suggests that Sunrun Inc has been working on optimizing its working capital management by efficiently managing its inventory, collecting receivables faster, and extending payables effectively. These improvements can contribute to the company's financial health and operational efficiency.

---

Long-term

The fixed asset turnover ratio for Sunrun Inc has fluctuated over the past five years, ranging from 0.11 to 0.21. This ratio indicates the company's ability to generate revenue from its investment in fixed assets such as property, plant, and equipment. The decreasing trend in fixed asset turnover from 2022 to 2023 may suggest a less efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also shown variability, with values ranging from 0.06 to 0.15. This ratio reflects Sunrun's ability to generate sales relative to its total assets. The ratios indicate that the company has shown varying levels of efficiency in generating revenue from its total asset base over the years.

Overall, the long-term activity ratios for Sunrun Inc suggest fluctuations in the efficiency of asset utilization for revenue generation. The company may need to assess and improve its asset management strategies to enhance operational efficiency and profitability in the future.