Sunrun Inc (RUN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -3,533,670 | -1,989,300 | -399,128 | -665,076 | -471,320 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,554,210 | 5,230,230 | 6,708,120 | 6,254,740 | 6,077,910 |
| Return on total capital | -138.35% | -38.03% | -5.95% | -10.63% | -7.75% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-3,533,670K ÷ ($—K + $2,554,210K)
= -138.35%
Based on the data provided, the return on total capital for Sunrun Inc has been declining over the years, indicating challenges in generating profits relative to the total capital employed in the business. The negative percentages suggest that the company's capital utilization has not been efficient in generating returns for its investors.
The return on total capital was -7.75% in December 2020, worsening to -10.63% by December 2021. Despite a slight improvement to -5.95% in December 2022, the ratio sharply plummeted to -38.03% by December 2023. The most concerning performance was observed in December 2024, with a significant decrease to -138.35%, signaling a substantial decrease in profitability relative to the total capital employed.
These declining trends in return on total capital may indicate underlying issues such as inefficient capital allocation, declining profitability, or increasing capital costs. Sunrun Inc may need to reassess its operational efficiency and capital management strategies to improve its ability to generate profits relative to the amount of capital invested in the business.
Peer comparison
Dec 31, 2024