Sunrun Inc (RUN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,651,560 | 1,385,680 | 1,270,230 | 861,987 | 587,334 |
| Inventory | US$ in thousands | 459,746 | 783,904 | 506,819 | 283,045 | 260,571 |
| Inventory turnover | 5.77 | 1.77 | 2.51 | 3.05 | 2.25 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,651,560K ÷ $459,746K
= 5.77
The inventory turnover ratio of Sunrun Inc has shown a general increasing trend over the past five years. In 2023, the inventory turnover ratio was 4.56, indicating that the company's inventory was sold and replaced approximately 4.56 times during the year. This represents a significant improvement compared to the previous years, where the ratios ranged between 2.48 and 2.69.
A higher inventory turnover ratio suggests that the company is managing its inventory more efficiently, possibly by reducing excess inventory levels or improving sales and production processes. This can lead to lower carrying costs, less risk of obsolescence, and better cash flow management.
Overall, the increasing trend in Sunrun Inc's inventory turnover ratio is a positive indicator of the company's operational efficiency and effectiveness in managing its inventory levels.
Peer comparison
Dec 31, 2023