Sunrun Inc (RUN)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,261,190 | 2,315,520 | 1,603,790 | 813,304 | 858,578 |
| Total current assets | US$ in thousands | 1,882,260 | 2,097,640 | 1,547,720 | 1,137,730 | 733,830 |
| Total current liabilities | US$ in thousands | 1,488,160 | 1,155,450 | 1,012,120 | 901,356 | 530,094 |
| Working capital turnover | 5.74 | 2.46 | 2.99 | 3.44 | 4.21 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,261,190K ÷ ($1,882,260K – $1,488,160K)
= 5.74
Sunrun Inc's working capital turnover has experienced fluctuation over the past five years, ranging from 2.46 in 2022 to 5.73 in 2023. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio typically signifies more effective management of working capital.
In 2023, Sunrun Inc's working capital turnover significantly improved to 5.73, indicating that the company was able to generate 5.73 times its revenue using its working capital during the year. This suggests improved efficiency in utilizing its current assets to generate sales.
On the other hand, in 2022, the working capital turnover ratio was lower at 2.46, indicating a decrease in efficiency compared to the previous year. However, it is important to note that the ratio has generally been above 3 in the past five years, indicating that Sunrun Inc has been relatively efficient in utilizing its working capital to generate sales revenue.
Overall, the trend in Sunrun Inc's working capital turnover ratio suggests that the company has been able to effectively manage its working capital in recent years, with fluctuations reflecting changes in operational efficiency and financial performance.
Peer comparison
Dec 31, 2023