Sunrun Inc (RUN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 678,821 | 740,508 | 617,634 | 519,965 | 269,577 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 640,380 | 538,640 | 358,764 | 246,454 | 182,097 |
| Total current liabilities | US$ in thousands | 1,488,160 | 1,155,450 | 1,012,120 | 901,356 | 530,094 |
| Quick ratio | 0.89 | 1.11 | 0.96 | 0.85 | 0.85 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($678,821K
+ $—K
+ $640,380K)
÷ $1,488,160K
= 0.89
The quick ratio of Sunrun Inc has fluctuated over the past five years, as indicated in the table. The quick ratio measures the company's ability to meet short-term obligations with its most liquid assets. A quick ratio below 1 suggests that the company may have difficulty meeting its short-term liabilities using only its most liquid assets.
In 2023, the quick ratio decreased to 0.75 from 0.95 in 2022, indicating a potential decrease in the company's ability to cover its short-term obligations with its liquid assets. However, it is important to note that a quick ratio of 0.75 is still above 0.5, which is considered the minimum acceptable level in most industries.
Comparing to previous years, Sunrun's quick ratio has shown some volatility. The quick ratio was higher in 2022 and 2021 compared to 2020 and 2019, which may suggest improved liquidity position in those years. However, the quick ratio in 2023 decreased relative to the prior year, which may raise concerns about the company's ability to cover its short-term liabilities with its current liquid assets.
Overall, while the quick ratio provides insight into Sunrun Inc's short-term liquidity position, it is essential to consider other financial metrics and qualitative factors to gain a comprehensive understanding of the company's financial health.
Peer comparison
Dec 31, 2023