Sunrun Inc (RUN)
Payables turnover
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,419,226 | 2,402,430 | 1,253,562 | 1,235,225 | 1,181,515 | 1,166,383 | 1,148,205 | 1,117,848 | 1,097,429 | 1,138,590 | 1,024,103 | 925,048 | 770,715 | 539,414 | 536,755 | 525,148 | 504,460 | 480,751 | 450,572 | 488,562 |
| Payables | US$ in thousands | 230,723 | 296,453 | 328,827 | 345,968 | 339,166 | 275,057 | 259,201 | 385,265 | 288,108 | 347,068 | 277,775 | 212,230 | 207,441 | 151,804 | 99,895 | 159,791 | 223,356 | 169,893 | 153,206 | 105,977 |
| Payables turnover | 10.49 | 8.10 | 3.81 | 3.57 | 3.48 | 4.24 | 4.43 | 2.90 | 3.81 | 3.28 | 3.69 | 4.36 | 3.72 | 3.55 | 5.37 | 3.29 | 2.26 | 2.83 | 2.94 | 4.61 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,419,226K ÷ $230,723K
= 10.49
Payables turnover is a financial ratio that measures how efficiently a company is managing its supplier relationships by paying its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can be a positive sign of effective cash management.
Analyzing the payables turnover of Sunrun Inc over the past eight quarters reveals a fluctuating trend. In Q4 2023, the payables turnover ratio was 9.09, showing an increase from the previous quarter's ratio of 7.32 in Q3 2023. This suggests that Sunrun Inc paid its suppliers more frequently in Q4 2023, potentially improving its relationship with suppliers.
Looking at the trend over the past year, the payables turnover ratio has generally been increasing since Q1 2022 when it was 3.95. This indicates that Sunrun Inc has been managing its payables more efficiently over time. However, the ratio peaked at 9.09 in Q4 2023, which could imply that the company might be accelerating its payments to suppliers, possibly to take advantage of early payment discounts or strengthen supplier relationships.
Overall, Sunrun Inc's increasing payables turnover ratio suggests that the company is effectively managing its payables and supplier relationships. It is important for investors and analysts to continue monitoring this ratio to understand the company's cash management strategy and financial health.
Peer comparison
Dec 31, 2023