Sunrun Inc (RUN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.26 | 1.35 | 1.47 | 1.81 | 1.82 | 1.74 | 1.73 | 1.60 | 1.53 | 1.24 | 1.25 | 1.59 | 1.26 | 1.08 | 1.23 | 1.49 | 1.38 | 1.32 | 0.83 | 1.37 |
| Quick ratio | 0.89 | 0.93 | 0.90 | 1.05 | 1.11 | 1.09 | 1.02 | 1.01 | 0.96 | 0.85 | 0.91 | 1.18 | 0.85 | 0.81 | 0.88 | 0.98 | 0.85 | 1.19 | 0.75 | 1.21 |
| Cash ratio | 0.46 | 0.50 | 0.47 | 0.55 | 0.64 | 0.62 | 0.53 | 0.59 | 0.61 | 0.56 | 0.61 | 0.81 | 0.58 | 0.46 | 0.52 | 0.60 | 0.51 | 0.76 | 0.47 | 0.73 |
The liquidity ratios of Sunrun Inc, as reflected in the data provided, show the company's ability to meet its short-term obligations:
1. Current Ratio: The current ratio measures the company's ability to pay off its short-term liabilities with its current assets. Sunrun Inc's current ratio has been fluctuating over the past eight quarters, ranging from 1.26 to 1.81. A current ratio above 1 indicates that the company has more current assets than current liabilities, with higher ratios generally considered more favorable. Sunrun's current ratio has generally been above 1, indicating a relatively healthy liquidity position.
2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Sunrun Inc's quick ratio has ranged from 0.67 to 0.95 over the same period. A quick ratio above 1 is typically preferred, as it suggests that the company can cover its short-term liabilities without relying on inventory sales. Sunrun's quick ratio has been below 1 in all quarters, which may indicate a reliance on inventory to meet short-term obligations.
3. Cash Ratio: The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. Sunrun Inc's cash ratio has varied from 0.54 to 0.77. A higher cash ratio indicates a stronger ability to meet short-term obligations with cash on hand. Sunrun's cash ratio has been below 1 in all quarters, suggesting that the company may need to rely on sources other than cash reserves to meet its short-term liabilities.
In summary, Sunrun Inc's liquidity ratios show a mixed performance over the analyzed quarters. While the current ratio generally indicates a healthy liquidity position, the quick ratio and cash ratio suggest potential limitations in the company's ability to meet short-term obligations without relying on inventory or other sources of liquidity. Investors and stakeholders should closely monitor these ratios to assess Sunrun's ongoing ability to maintain a strong liquidity position.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of 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 into cash relatively quickly. However, in subsequent quarters, the cash conversion cycle lengthened, reaching its peak in Q1 2023 at 126.00 days.
During Q2 and Q3 2023, the cash conversion cycle improved slightly but remained elevated compared to previous quarters. By Q4 2023, the cycle decreased significantly to 67.65 days, approaching a level closer to the more efficient performance seen in Q1 2022.
Overall, Sunrun Inc has experienced fluctuations in its cash conversion cycle, which may indicate variability in its management of working capital components such as inventory and accounts receivable. It is important for the company to closely monitor and manage its cash conversion cycle to ensure efficient cash flow management and liquidity.