Sunrun Inc (RUN)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 84.08 | 69.15 | 68.14 | 75.85 | 80.03 | 111.37 | 133.04 | 152.29 | 141.46 | 115.40 | 118.31 | 133.26 | 135.48 | 130.45 | 118.71 | 121.85 | 138.95 | 99.59 | 116.66 | 140.68 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 84.08 | 69.15 | 68.14 | 75.85 | 80.03 | 111.37 | 133.04 | 152.29 | 141.46 | 115.40 | 118.31 | 133.26 | 135.48 | 130.45 | 118.71 | 121.85 | 138.95 | 99.59 | 116.66 | 140.68 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 84.08 + — – —
= 84.08
The cash conversion cycle of Sunrun Inc has shown fluctuations over the periods analyzed. Starting at 140.68 days on March 31, 2020, the cycle decreased to 99.59 days on September 30, 2020, indicating an improvement in the company's ability to convert its resources into cash. However, the cycle increased again to 138.95 days by the end of December 2020.
Thereafter, Sunrun Inc managed to bring down the cycle to 118.31 days by June 30, 2022, showing operational efficiency. The cycle then increased to 152.29 days by March 31, 2023, reflecting a potential strain on cash flows. However, by the end of December 31, 2024, the cycle decreased significantly to 84.08 days, suggesting a positive trend in cash management practices.
Overall, fluctuations in the cash conversion cycle may indicate changes in the company's operational efficiency, inventory management, and accounts receivable and accounts payable processes. It is essential for Sunrun Inc to consistently monitor and manage its cash conversion cycle to ensure optimal cash flow and working capital management.
Peer comparison
Dec 31, 2024