Sunrun Inc (RUN)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -1,604,500 | 173,377 | -79,423 | -173,394 | 26,335 |
| Total stockholders’ equity | US$ in thousands | 5,230,230 | 6,708,120 | 6,254,740 | 6,077,910 | 964,731 |
| ROE | -30.68% | 2.58% | -1.27% | -2.85% | 2.73% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-1,604,500K ÷ $5,230,230K
= -30.68%
Sunrun Inc's return on equity (ROE) has been fluctuating over the past five years, ranging from -30.68% in 2023 to 2.73% in 2019. The negative ROE figures in 2023, 2021, and 2020 indicate that the company's net income is insufficient to cover its shareholders' equity, resulting in a loss. It is concerning that the ROE has been negative for three out of the five years analyzed.
The improvement in ROE in 2022 and 2019 shows that the company was able to generate higher returns relative to its equity during those years. However, the positive ROE in these years is relatively low, suggesting that Sunrun Inc may not be efficiently utilizing its shareholders' equity to generate profits.
Overall, the inconsistent and mostly negative ROE figures reflect challenges in generating adequate returns for the company's shareholders. Sunrun Inc may need to focus on improving profitability, efficiency, and overall financial performance to enhance its ROE in the future.
Peer comparison
Dec 31, 2023