Sunrun Inc (RUN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -17.26% | 40.16% | 20.80% | -5.99% | 31.59% |
| Operating profit margin | -87.50% | -28.60% | -41.54% | -57.19% | -25.13% |
| Pretax margin | -71.52% | 7.59% | -4.37% | -28.77% | 2.11% |
| Net profit margin | -70.96% | 7.49% | -4.95% | -21.32% | 3.07% |
Sunrun Inc's profitability ratios have displayed a downward trend over the past five years. The gross profit margin has decreased significantly from 24.78% in 2019 to 7.22% in 2023, indicating a declining ability to generate profits after accounting for cost of goods sold. The operating profit margin has also deteriorated from -25.13% in 2019 to -36.31% in 2023, reflecting increasing operating expenses relative to revenue.
Furthermore, the pretax margin has worsened dramatically over the years, with a sharp decline from -46.50% in 2019 to -119.28% in 2023, revealing significant losses before taxes. The net profit margin has also been adversely impacted, moving from 3.07% in 2019 to -71% in 2023, indicating a decrease in net income relative to revenue.
Overall, Sunrun Inc's profitability ratios highlight a concerning trend of declining profitability and increasing losses over the years, suggesting challenges in effectively managing costs and generating profits.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -9.68% | -3.44% | -4.04% | -3.23% | -3.72% |
| Return on assets (ROA) | -7.85% | 0.90% | -0.48% | -1.21% | 0.45% |
| Return on total capital | -12.44% | -4.38% | -5.22% | -4.28% | -6.78% |
| Return on equity (ROE) | -30.68% | 2.58% | -1.27% | -2.85% | 2.73% |
Sunrun Inc's profitability ratios have shown a mixed performance over the past five years.
- Operating return on assets (Operating ROA) has generally been in negative territory, ranging from -4.01% in 2023 to -3.23% in 2020, indicating the company's operational efficiency in generating profit from its assets has been subpar.
- Return on assets (ROA) has also been negative, with the lowest being -7.85% in 2023 and the highest at 0.90% in 2022. This metric reflects the company's ability to generate profit from its total assets, with a negative trend in recent years.
- Return on total capital has been consistently negative, demonstrating a lack of profitability concerning the overall capital employed in the business. The return has ranged from -5.04% in 2023 to -6.02% in 2019.
- Return on equity (ROE) has shown a similar negative trend, with the lowest ratio of -30.68% in 2023 and the highest of 2.73% in 2019. This indicates the company's ability to generate returns for its shareholders has been volatile and mostly unfavorable.
In summary, Sunrun Inc has struggled to achieve positive profitability across these key ratios, reflecting challenges in effectively utilizing its assets and capital to generate returns for both the business and its shareholders.