Sunrun Inc (RUN)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,260,655 | 2,347,628 | 2,415,782 | 2,410,703 | 2,316,638 | 2,140,683 | 1,942,005 | 1,758,557 | 1,491,043 | 1,273,601 | 1,050,733 | 830,895 | 813,356 | 845,751 | 851,504 | 874,805 | 858,578 | 854,761 | 844,179 | 810,122 |
| Total current assets | US$ in thousands | 1,882,260 | 1,928,520 | 2,083,080 | 2,084,270 | 2,097,640 | 1,880,030 | 1,710,370 | 1,709,350 | 1,547,720 | 1,594,660 | 1,396,650 | 1,268,650 | 1,137,730 | 645,739 | 638,240 | 707,816 | 733,830 | 567,240 | 530,086 | 463,060 |
| Total current liabilities | US$ in thousands | 1,488,160 | 1,423,270 | 1,421,680 | 1,150,020 | 1,155,450 | 1,082,500 | 990,998 | 1,069,910 | 1,012,120 | 1,283,630 | 1,119,110 | 798,835 | 901,356 | 596,240 | 517,299 | 474,757 | 530,094 | 429,012 | 637,890 | 336,802 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,260,655K ÷ ($1,882,260K – $1,488,160K)
= 5.74
The working capital turnover ratio for Sunrun Inc has shown fluctuations over the past eight quarters. The ratio measures how efficiently the company is utilizing its working capital to generate revenue.
In Q4 2023, the working capital turnover ratio reached 5.73, indicating that Sunrun was able to generate $5.73 in revenue for every dollar of working capital invested during the quarter. This was a significant improvement compared to the previous quarter.
The upward trend in the working capital turnover ratio from Q1 2023 to Q4 2023 suggests that Sunrun has been managing its working capital more efficiently over time. This could be attributed to improved inventory management, efficient receivables collection, or better cash flow management.
It is important to note that while a higher working capital turnover ratio is generally positive as it implies more efficient utilization of resources, an excessively high ratio could indicate aggressive management of working capital, which may not be sustainable in the long term.
Overall, the increasing trend in Sunrun's working capital turnover ratio indicates an improvement in the company's operational efficiency and management of working capital over the past year.
Peer comparison
Dec 31, 2023