Sunrun Inc (RUN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 678,821 | 740,508 | 617,634 | 519,965 | 269,577 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,488,160 | 1,155,450 | 1,012,120 | 901,356 | 530,094 |
| Cash ratio | 0.46 | 0.64 | 0.61 | 0.58 | 0.51 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($678,821K
+ $—K)
÷ $1,488,160K
= 0.46
The cash ratio of Sunrun Inc has shown some fluctuations over the past five years, ranging from 0.57 in 2019 to 0.77 in 2022. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a company has more liquid assets to cover its short-term obligations.
In 2023, Sunrun Inc's cash ratio decreased to 0.63 from 0.77 in 2022, which suggests a slight decrease in its ability to cover short-term liabilities with cash and cash equivalents. However, a cash ratio of 0.63 still indicates that the company has sufficient liquid assets to meet its short-term obligations.
Overall, the trend in Sunrun Inc's cash ratio indicates that the company has managed its liquidity well over the years, maintaining a healthy level of cash reserves relative to its short-term liabilities. However, it is important for investors and stakeholders to monitor any significant changes in the cash ratio, as it could indicate potential liquidity challenges for the company.
Peer comparison
Dec 31, 2023