Sunrun Inc (RUN)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 85.87 | 80.03 | 141.46 | 135.48 | 138.95 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 85.87 | 80.03 | 141.46 | 135.48 | 138.95 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 85.87 + — – —
= 85.87
The cash conversion cycle of Sunrun Inc has shown fluctuations over the past five years.
As of December 31, 2020, the company had a cash conversion cycle of 138.95 days, indicating that it took nearly 139 days for Sunrun to convert its investments in inventory and accounts receivable into cash.
By December 31, 2021, the cash conversion cycle decreased slightly to 135.48 days, suggesting a modest improvement in the company's efficiency in managing its working capital.
However, by December 31, 2022, the cash conversion cycle increased to 141.46 days, reflecting a slowdown in Sunrun's cash conversion efficiency, possibly due to changes in operational processes or market conditions.
The following year, as of December 31, 2023, the cash conversion cycle significantly improved to 80.03 days, indicating a notable enhancement in the company's ability to convert its assets into cash more rapidly.
By the end of December 31, 2024, the cash conversion cycle remained in a favorable position at 85.87 days, reinforcing Sunrun's efficiency in managing its working capital and generating cash flow.
Overall, the trend in Sunrun Inc's cash conversion cycle demonstrates fluctuations, highlighting the importance of continuously monitoring and optimizing working capital management practices to enhance operational efficiency and financial performance.
Peer comparison
Dec 31, 2024