Sunrun Inc (RUN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.25 | 4.56 | 2.58 | 2.69 | 2.63 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 5.25 | 5.73 | 2.46 | 3.01 | 3.90 |
Sunrun Inc's activity ratios provide insight into the efficiency of the company's operations.
1. Inventory Turnover:
- The inventory turnover ratio measures how effectively the company is managing its inventory. Sunrun Inc's inventory turnover has shown a slight increase over the years, from 2.63 in 2020 to 4.25 in 2024. This indicates that the company is selling its inventory more frequently in recent years, which is a positive sign of efficient inventory management.
2. Receivables Turnover:
- Sunrun Inc's receivables turnover data is not available for the years provided. Receivables turnover ratio would have indicated how efficiently the company is collecting its accounts receivable.
3. Payables Turnover:
- Similarly, the payables turnover data is not provided, which would have shown how quickly the company is paying its suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales. Sunrun Inc's working capital turnover has shown some fluctuations but has generally increased from 3.90 in 2020 to 5.25 in 2024. This suggests that the company is effectively utilizing its working capital to generate sales, indicating operational efficiency.
Overall, based on the available activity ratios, Sunrun Inc appears to be managing its inventory efficiently and effectively using its working capital to generate sales. The lack of data for receivables and payables turnovers limits a comprehensive analysis of the company's overall activity performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 85.87 | 80.03 | 141.46 | 135.48 | 138.95 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios for Sunrun Inc provide insights into its efficiency in managing its inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH):
- Sunrun's DOH decreased from 138.95 days in 2020 to 85.87 days in 2024.
- A decreasing trend in DOH indicates that Sunrun is selling its inventory more quickly, which can lead to lower holding costs, better cash flow, and potentially higher profits.
- The decrease in DOH suggests that Sunrun has been able to optimize its inventory management over the years.
2. Days of Sales Outstanding (DSO):
- The data provided does not include any information on Days of Sales Outstanding for Sunrun Inc.
- DSO measures how quickly a company collects its accounts receivable.
- Without this information, it is challenging to assess Sunrun's efficiency in collecting its sales revenue from customers.
3. Number of Days of Payables:
- The data also does not include any information on the Number of Days of Payables for Sunrun Inc.
- This ratio would have provided insights into how long it takes for Sunrun to pay its suppliers.
- A longer number of days of payables could indicate that Sunrun is effectively using trade credit to manage its cash flow.
In conclusion, while the information on DOH shows an improvement in inventory management efficiency for Sunrun Inc, the lack of data on DSO and payables makes it challenging to assess the company's performance in managing receivables and payables effectively.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 0.21 | 0.17 | 0.11 |
| Total asset turnover | 0.10 | 0.11 | 0.12 | 0.10 | 0.06 |
Long-term activity ratios such as Fixed Asset Turnover and Total Asset Turnover provide insights into how efficiently Sunrun Inc is utilizing its assets to generate revenue.
1. Fixed Asset Turnover: This ratio measures how effectively the company is using its fixed assets to generate sales. Sunrun's Fixed Asset Turnover has shown an increasing trend over the years, from 0.11 in 2020 to 0.21 in 2022. This indicates that Sunrun has been able to generate more revenue per dollar of fixed assets invested. However, there is missing data for the years 2023 and 2024, which makes it challenging to assess the trend in recent years.
2. Total Asset Turnover: Total Asset Turnover reflects how efficient the company is at using all its assets to generate sales. Sunrun's Total Asset Turnover has also been increasing gradually, from 0.06 in 2020 to 0.10 in 2021 and 2022. This suggests that Sunrun has been able to generate more revenue relative to its total assets. The metric dipped slightly to 0.11 in 2023 but remained relatively stable at 0.10 in 2024.
Overall, the trend in both Fixed Asset Turnover and Total Asset Turnover ratios indicates that Sunrun Inc has been improving its efficiency in utilizing assets to generate revenue. However, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's performance in this area.