Sunrun Inc (RUN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 574,956 | 678,821 | 740,508 | 617,634 | 519,965 |
| Short-term investments | US$ in thousands | — | 0 | 55,000 | — | — |
| Total current liabilities | US$ in thousands | 1,334,480 | 1,488,160 | 1,155,450 | 1,012,120 | 901,356 |
| Cash ratio | 0.43 | 0.46 | 0.69 | 0.61 | 0.58 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($574,956K
+ $—K)
÷ $1,334,480K
= 0.43
The cash ratio for Sunrun Inc has fluctuated over the years based on the provided data. As of December 31, 2020, the cash ratio stood at 0.58, indicating that the company had $0.58 in cash and cash equivalents for every dollar of current liabilities. By December 31, 2021, the cash ratio slightly improved to 0.61, suggesting a slight increase in the company's ability to cover its short-term obligations with cash on hand.
There was a more significant improvement in the cash ratio by December 31, 2022, where it reached 0.69, indicating a notable strengthening of the company's liquidity position. However, there was a sharp decline in the cash ratio by December 31, 2023, falling to 0.46, which could potentially signal a decrease in the company's ability to cover its short-term liabilities with its available cash reserves.
The downward trend continued as of December 31, 2024, with the cash ratio decreasing further to 0.43. This decline suggests that Sunrun Inc may be facing challenges in maintaining sufficient cash reserves relative to its current liabilities. It is important for the company to closely monitor its liquidity position and manage its cash flow effectively to ensure it can meet its short-term obligations in a sustainable manner.
Peer comparison
Dec 31, 2024