Sunrun Inc (RUN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 7.22% | 12.87% | 15.19% | 19.37% |
| Operating profit margin | -181.34% | -87.56% | -17.30% | -41.38% | -50.44% |
| Pretax margin | -215.05% | -119.28% | -36.50% | -60.33% | -74.55% |
| Net profit margin | -139.67% | -71.00% | -36.60% | -60.90% | -67.98% |
Sunrun Inc's profitability ratios have shown fluctuating trends over the years. The gross profit margin has decreased from 19.37% in 2020 to 12.87% in 2022, before jumping significantly to 100.00% in 2024. This drastic increase in gross profit margin in 2024 could be due to specific factors affecting the company's cost structure or revenue recognition.
The operating profit margin has also exhibited a downward trajectory, starting at -50.44% in 2020 and improving slightly to -17.30% in 2022, albeit still negative. However, the operating profit margin worsened significantly to -181.34% in 2024, indicating the company's challenges in generating profits from its core operations.
Similarly, the pretax margin and net profit margin have remained negative throughout the years, with fluctuations in the magnitude of losses. The pretax margin went from -74.55% in 2020 to -215.05% in 2024, reflecting the company's struggle to control operating costs and expenses relative to its revenue. The net profit margin also experienced significant volatility, reaching its lowest point at -139.67% in 2024, signaling that Sunrun Inc continues to face challenges in generating profits after accounting for all expenses.
Overall, Sunrun Inc's profitability ratios indicate a mix of inconsistent performance and financial difficulties, highlighting the need for the company to address its cost structure, operational efficiency, and revenue generation strategies to enhance profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -18.57% | -9.68% | -2.08% | -4.04% | -3.23% |
| Return on assets (ROA) | -14.30% | -7.85% | -4.41% | -5.95% | -4.36% |
| Return on total capital | -138.35% | -38.03% | -5.95% | -10.63% | -7.75% |
| Return on equity (ROE) | -111.43% | -30.68% | -12.67% | -15.68% | -10.32% |
Sunrun Inc's profitability ratios indicate declining performance over the past few years. The Operating return on assets (Operating ROA) has fluctuated, with a decrease from -3.23% in 2020 to -18.57% in 2024. The Return on assets (ROA) also shows a decreasing trend from -4.36% in 2020 to -14.30% in 2024.
Furthermore, the Return on total capital demonstrates a sharp decline from -7.75% in 2020 to -138.35% in 2024, indicating significant challenges in generating returns on the total capital employed. Similarly, the Return on equity (ROE) reflects deteriorating performance from -10.32% in 2020 to -111.43% in 2024, signaling a declining ability to generate profits for the company's shareholders.
Overall, the profitability ratios suggest that Sunrun Inc's profitability has been on a downward trajectory, indicating potential challenges in efficiently utilizing assets and capital to generate returns for investors.