Sunrun Inc (RUN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -1,978,640 | -662,192 | -666,187 | -465,108 | -215,740 |
| Long-term debt | US$ in thousands | 10,671,900 | 8,399,150 | 6,502,890 | 4,796,140 | 2,219,590 |
| Total stockholders’ equity | US$ in thousands | 5,230,230 | 6,708,120 | 6,254,740 | 6,077,910 | 964,731 |
| Return on total capital | -12.44% | -4.38% | -5.22% | -4.28% | -6.78% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-1,978,640K ÷ ($10,671,900K + $5,230,230K)
= -12.44%
Sunrun Inc's return on total capital has been negative over the past five years, indicating that the company has not been generating sufficient returns from its invested capital. The trend shows a slight fluctuation in the negative returns, with the lowest being in 2019 at -6.02% and the highest in 2022 at -4.29%.
The negative return on total capital suggests that Sunrun Inc may not be effectively utilizing its capital to generate profits. Investors and stakeholders may be concerned about the company's ability to generate adequate returns on the capital employed in its operations. Further analysis of the company's financial performance and operational efficiency is recommended to understand the reasons behind the consistently negative return on total capital.
Peer comparison
Dec 31, 2023