Sunrun Inc (RUN)
Payables 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 |
| Payables | US$ in thousands | 230,723 | 339,166 | 288,108 | 207,441 | 223,356 |
| Payables turnover | 11.49 | 4.09 | 4.41 | 4.16 | 2.63 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,651,560K ÷ $230,723K
= 11.49
The payables turnover ratio indicates how efficiently Sunrun Inc is managing its accounts payable. The trend shows a consistent increase in the payables turnover ratio over the past five years, starting at 2.89 in 2019 and reaching 9.09 in 2023.
This improvement suggests that Sunrun Inc is paying off its suppliers at a faster rate, which can be seen as a positive sign of efficient cash flow management. A higher payables turnover ratio means the company is settling its payables more quickly, potentially taking advantage of any discounts offered for early payment and maintaining good relationships with suppliers.
Overall, the increasing trend in Sunrun Inc's payables turnover ratio indicates effective control over its accounts payable and better utilization of working capital.
Peer comparison
Dec 31, 2023