Sunrun Inc (RUN)

Sunrun Inc's current ratio has shown a positive trend, increasing from 1.26 in December 31, 2020, to 1.53 in December 31, 2021, and further to 1.82 in December 31, 2022. This indicates the company's ability to cover its short-term liabilities with its current assets has been improving over the years. However, there was a slight decline to 1.26 in December 31, 2023, followed by a small increase to 1.29 in December 31, 2024.

On the other hand, Sunrun's quick ratio, which excludes inventory from current assets, has also shown a positive but less stable trend. It increased from 0.58 in December 31, 2020, to 0.61 in December 31, 2021, and further to 0.69 in December 31, 2022. However, it decreased to 0.46 in December 31, 2023, and further to 0.43 in December 31, 2024. This indicates that Sunrun may have a tighter liquidity position when inventory is excluded from current assets.

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has followed a similar trend as the quick ratio. It has increased from 0.58 in December 31, 2020, to 0.61 in December 31, 2021, and to 0.69 in December 31, 2022. However, it decreased to 0.46 in December 31, 2023, and further to 0.43 in December 31, 2024, indicating a potential decrease in the company's ability to cover its short-term obligations solely with cash.

Overall, Sunrun's liquidity ratios show varying trends over the years, with the current ratio generally improving, while the quick and cash ratios fluctuate, indicating potential changes in the company's liquidity position. Monitoring these ratios will be important for assessing the company's ability to meet its short-term obligations effectively.

---

Additional liquidity measure

The cash conversion cycle of Sunrun Inc has shown some fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle was 138.95 days, which decreased slightly to 135.48 days by December 31, 2021. However, by December 31, 2022, the cycle increased to 141.46 days before experiencing a significant improvement to 80.03 days by December 31, 2023. Subsequently, as of December 31, 2024, the cycle increased to 85.87 days.

Overall, the trend in the cash conversion cycle of Sunrun Inc indicates some variability in the efficiency of the company in converting its resources into cash. The notable decrease in the cycle from 2022 to 2023 suggests improvement in managing working capital and better cash flow management. However, the subsequent increase in the cycle in 2024 may indicate potential challenges in maintaining efficient cash conversion processes. Further analysis would be necessary to understand the underlying factors contributing to these changes and their impact on the company's financial performance.