Sunrun Inc (RUN)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -2,846,170 | -1,604,500 | -849,645 | -980,530 | -626,948 |
| Total stockholders’ equity | US$ in thousands | 2,554,210 | 5,230,230 | 6,708,120 | 6,254,740 | 6,077,910 |
| ROE | -111.43% | -30.68% | -12.67% | -15.68% | -10.32% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-2,846,170K ÷ $2,554,210K
= -111.43%
The return on equity (ROE) indicates the efficiency with which Sunrun Inc is utilizing its shareholders' equity to generate profits. Over the period from December 31, 2020, to December 31, 2024, Sunrun's ROE has shown a declining trend, ranging from -10.32% to -111.43%.
The negative ROE values imply that Sunrun Inc has been facing challenges in generating profits relative to its equity base. The significant drop in ROE from -30.68% in 2023 to -111.43% in 2024 is particularly concerning, indicating a substantial decrease in the company's ability to generate returns for its equity providers.
It is imperative for Sunrun Inc to identify the underlying causes of these declining ROE figures and implement strategic measures to improve profitability and efficiency in order to enhance shareholder value in the future.
Peer comparison
Dec 31, 2024