Sunrun Inc (RUN)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.26 | 3.63 | 1.58 | 1.39 | 1.51 | 1.98 | 2.10 | 2.01 | 2.17 | 2.56 | 3.00 | 3.19 | 2.72 | 3.03 | 2.55 | 2.04 | 1.94 | 4.38 | 5.02 | 6.41 |
| Receivables turnover | 3.53 | 3.78 | 3.99 | 4.16 | 4.30 | 4.24 | 4.01 | 3.94 | 4.16 | 3.39 | 3.07 | 2.85 | 3.30 | 4.04 | 4.61 | 4.89 | 4.71 | 4.55 | 4.69 | 5.05 |
| 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 |
| Working capital turnover | 5.74 | 4.65 | 3.65 | 2.58 | 2.46 | 2.68 | 2.70 | 2.75 | 2.78 | 4.09 | 3.79 | 1.77 | 3.44 | 17.09 | 7.04 | 3.75 | 4.21 | 6.18 | — | 6.42 |
Inventory turnover for Sunrun Inc has been relatively stable over the past eight quarters, ranging from 2.40 to 4.56. This indicates that the company is efficiently managing its inventory levels and converting them into sales. A higher inventory turnover ratio suggests that Sunrun is effectively selling its inventory, which is a positive sign.
Receivables turnover has shown a consistent increase over the quarters, with values ranging from 8.83 to 13.14. This indicates that Sunrun is collecting its receivables more efficiently, which is a good sign in terms of cash flow generation.
Payables turnover has also been on an upward trend, with values ranging from 3.95 to 9.09. This indicates that Sunrun is managing its payables effectively by paying its suppliers in a timely manner. A higher payables turnover ratio suggests that the company is not holding onto its payables for extended periods, which can be beneficial in maintaining good relationships with suppliers.
Working capital turnover has shown fluctuations over the quarters, with values ranging from 2.46 to 5.73. This ratio reflects how effectively Sunrun is utilizing its working capital to generate sales. A higher working capital turnover ratio suggests efficient use of resources and a more optimal management of working capital.
Overall, the activity ratios suggest that Sunrun Inc is effectively managing its operations in terms of inventory, receivables, payables, and working capital turnover, which is a positive indication of the company's operational efficiency and financial health.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 69.36 | 100.55 | 230.53 | 262.37 | 242.17 | 184.35 | 174.02 | 181.53 | 168.57 | 142.50 | 121.69 | 114.34 | 134.05 | 120.42 | 143.15 | 179.05 | 188.54 | 83.35 | 72.77 | 56.92 |
| Days of sales outstanding (DSO) | days | 103.39 | 96.64 | 91.47 | 87.80 | 84.87 | 86.13 | 90.99 | 92.60 | 87.82 | 107.58 | 119.02 | 127.88 | 110.60 | 90.46 | 79.18 | 74.64 | 77.41 | 80.13 | 77.78 | 72.21 |
| Number of days of payables | days | 34.81 | 45.04 | 95.74 | 102.23 | 104.78 | 86.07 | 82.40 | 125.80 | 95.82 | 111.26 | 99.00 | 83.74 | 98.24 | 102.72 | 67.93 | 111.06 | 161.61 | 128.99 | 124.11 | 79.17 |
Sunrun Inc's activity ratios show fluctuations over the past eight quarters.
1. Days of Inventory on Hand (DOH): This ratio indicates the average number of days it takes for the company to sell its inventory. Sunrun Inc's DOH has varied significantly, ranging from as low as 80.03 days to as high as 152.29 days. The downward trend in recent quarters suggests improved inventory management efficiency, with inventory being turned over more quickly.
2. Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes for the company to collect payments from its customers. Sunrun Inc's DSO has shown a declining trend over the quarters, indicating that the company has been able to collect payments from customers more quickly. The DSO has decreased from 33.69 days to 27.78 days, indicating an improvement in accounts receivable management.
3. Number of Days of Payables: This ratio indicates the average number of days it takes for the company to pay its suppliers. Sunrun Inc's number of days of payables has fluctuated, with a significant increase from 53.88 days in Q3 2022 to 92.35 days in Q1 2022. This may indicate a potential liquidity or cash management strategy by the company.
Overall, the trends in Sunrun Inc's activity ratios suggest that the company has been working on improving its operational efficiency and management of working capital.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | — | — | — | — | — | 14.28 | 13.08 | 18.98 | 17.80 | — | 15.14 | 15.05 | 16.74 | 22.96 |
| Total asset turnover | 0.11 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.11 | 0.10 | 0.09 | 0.08 | 0.07 | 0.06 | 0.06 | 0.13 | 0.14 | 0.15 | 0.15 | 0.16 | 0.16 | 0.16 |
Long-term activity ratios provide insight into how efficiently a company is utilizing its long-term assets to generate revenue. In the case of Sunrun Inc, we will focus on two key ratios: fixed asset turnover and total asset turnover.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively the company is using its fixed assets to generate sales. A higher ratio indicates better utilization of fixed assets.
- Sunrun Inc's fixed asset turnover has been relatively stable over the past eight quarters, ranging from 0.17 to 0.21, with a slight downward trend in recent quarters.
- The ratio has averaged around 0.20, suggesting that, on average, the company generates $0.20 in revenue for every dollar invested in fixed assets.
- While a steady ratio is generally positive, management may seek to improve efficiency in utilizing fixed assets to increase revenue generation.
2. Total Asset Turnover:
- The total asset turnover ratio reflects how efficiently the company is using all its assets to generate sales. A higher ratio indicates more efficient use of assets.
- Sunrun Inc's total asset turnover has also been relatively consistent over the past eight quarters, ranging from 0.10 to 0.12.
- The ratio has averaged around 0.12, implying that the company generates $0.12 in revenue for every dollar invested in total assets.
- Similar to the fixed asset turnover ratio, a stable total asset turnover ratio indicates a consistent level of efficiency in asset utilization.
In conclusion, based on the data provided, Sunrun Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, have shown stability over the quarters analyzed. The company appears to be efficiently utilizing its long-term assets to generate revenue, although there may be opportunities for further optimization to enhance overall operational efficiency.