Sunrun Inc (RUN)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 69.36 | 100.55 | 230.53 | 262.37 | 242.17 | 184.35 | 174.02 | 181.53 | 168.57 | 142.50 | 121.69 | 114.34 | 134.05 | 120.42 | 143.15 | 179.05 | 188.54 | 83.35 | 72.77 | 56.92 |
| Days of sales outstanding (DSO) | days | 103.39 | 96.64 | 91.47 | 87.80 | 84.87 | 86.13 | 90.99 | 92.60 | 87.82 | 107.58 | 119.02 | 127.88 | 110.60 | 90.46 | 79.18 | 74.64 | 77.41 | 80.13 | 77.78 | 72.21 |
| Number of days of payables | days | 34.81 | 45.04 | 95.74 | 102.23 | 104.78 | 86.07 | 82.40 | 125.80 | 95.82 | 111.26 | 99.00 | 83.74 | 98.24 | 102.72 | 67.93 | 111.06 | 161.61 | 128.99 | 124.11 | 79.17 |
| Cash conversion cycle | days | 137.95 | 152.15 | 226.25 | 247.93 | 222.26 | 184.40 | 182.61 | 148.33 | 160.57 | 138.82 | 141.70 | 158.48 | 146.40 | 108.16 | 154.40 | 142.64 | 104.34 | 34.49 | 26.44 | 49.96 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.36 + 103.39 – 34.81
= 137.95
The cash conversion cycle for Sunrun Inc has shown fluctuations over the past eight quarters. In Q1 2022, the company had a relatively efficient cash conversion cycle of 82.25 days, indicating that it was able to convert its investments in inventory and accounts receivable back into cash within a shorter timeframe. However, in subsequent quarters, the cash conversion cycle increased significantly, reaching its peak at 126.00 days in Q1 2023.
This prolonged cash conversion cycle suggests that Sunrun Inc may be facing challenges in efficiently managing its working capital. The longer it takes for the company to convert its resources into cash, the greater the strain on its liquidity and potential impact on its overall financial health. A prolonged cash conversion cycle could also indicate issues with inventory management, slow collections from customers, or difficulties in paying suppliers promptly.
It is important for Sunrun Inc to closely monitor and analyze its cash conversion cycle to identify areas for improvement and implement strategies to streamline its working capital management. By optimizing its cash conversion cycle, the company can enhance its liquidity position, improve its financial performance, and ultimately support its long-term sustainability and growth objectives.
Peer comparison
Dec 31, 2023