Sunrun Inc (RUN)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 10,671,900 | 8,399,150 | 6,502,890 | 4,796,140 | 2,219,590 |
| Total assets | US$ in thousands | 20,450,200 | 19,268,800 | 16,483,300 | 14,382,900 | 5,806,340 |
| Debt-to-assets ratio | 0.52 | 0.44 | 0.39 | 0.33 | 0.38 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $10,671,900K ÷ $20,450,200K
= 0.52
The debt-to-assets ratio of Sunrun Inc has shown an increasing trend over the past five years, rising from 0.45 in 2019 to 0.54 in 2023. This indicates that the company's proportion of debt relative to its total assets has been increasing.
A higher debt-to-assets ratio suggests that a larger portion of the company's assets is financed by debt rather than equity. This could be reflective of Sunrun's strategic decisions to leverage debt for funding its operations, expansion, or other investments.
While a higher debt-to-assets ratio can potentially enhance returns on equity, it also indicates a higher financial risk as the company is relying more on debt financing. Investors and creditors may closely monitor this ratio to assess the company's ability to manage its debt levels, service its debt obligations, and maintain financial stability.
It is essential for Sunrun Inc to carefully balance its debt and equity mix to ensure sustainable growth and mitigate the risks associated with excessive leverage. Monitoring changes in the debt-to-assets ratio over time can provide valuable insights into the company's financial health and risk profile.
Peer comparison
Dec 31, 2023