Sunrun Inc (RUN)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 63.29 | 206.49 | 145.63 | 119.85 | 161.93 |
| Days of sales outstanding (DSO) | days | 103.37 | 84.91 | 81.65 | 110.61 | 77.41 |
| Number of days of payables | days | 31.76 | 89.34 | 82.79 | 87.84 | 138.81 |
| Cash conversion cycle | days | 134.90 | 202.05 | 144.50 | 142.62 | 100.54 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 63.29 + 103.37 – 31.76
= 134.90
The cash conversion cycle of Sunrun Inc has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 67.65 days from the previous year, indicating an improvement in its efficiency in managing cash flows. This trend is positive as it suggests that the company is able to convert its investments in inventory and accounts receivable into cash more quickly.
Comparing 2023 to 2019, the cash conversion cycle has increased significantly by 13.57 days. This indicates that there has been a deterioration in the company's ability to efficiently convert its resources into cash over this period. Further analysis is warranted to understand the factors contributing to this increase and to devise strategies to improve the cash conversion cycle of Sunrun Inc in the future.
Overall, the cash conversion cycle provides valuable insights into the operational efficiency and liquidity management of Sunrun Inc, which can help stakeholders assess the company's financial health and performance.
Peer comparison
Dec 31, 2023