Sunrun Inc (RUN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,037,720 | 2,259,810 | 2,321,420 | 1,609,950 | 922,191 |
| Total current assets | US$ in thousands | 1,722,640 | 1,882,260 | 2,097,640 | 1,547,720 | 1,137,730 |
| Total current liabilities | US$ in thousands | 1,334,480 | 1,488,160 | 1,155,450 | 1,012,120 | 901,356 |
| Working capital turnover | 5.25 | 5.73 | 2.46 | 3.01 | 3.90 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,037,720K ÷ ($1,722,640K – $1,334,480K)
= 5.25
The working capital turnover ratio for Sunrun Inc has shown some fluctuations over the past five years. Starting at 3.90 in December 31, 2020, the ratio gradually decreased to 3.01 by December 31, 2021, indicating a potential inefficiency in managing working capital. However, there was a further decline to 2.46 by December 31, 2022, reflecting a notable decrease in the company's ability to generate revenue relative to its working capital.
The trend reversed significantly in December 31, 2023, with a considerable spike in the working capital turnover ratio to 5.73, suggesting a substantial improvement in efficiency in utilizing working capital to generate sales during that period. This could be a sign of improved operational effectiveness or a more streamlined management of working capital resources.
By the end of December 31, 2024, the ratio slightly decreased to 5.25, indicating that Sunrun Inc continued to maintain a relatively high turnover of working capital compared to the previous year, albeit at a slightly lower rate. Overall, the fluctuating trend in the working capital turnover ratio over the five-year period suggests varying levels of efficiency in Sunrun Inc's working capital management and revenue generation activities.
Peer comparison
Dec 31, 2024