Sunrun Inc (RUN)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 5,230,230 | 6,708,120 | 6,254,740 | 6,077,910 | 964,731 |
| Debt-to-capital ratio | 0.67 | 0.56 | 0.51 | 0.44 | 0.70 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $10,671,900K ÷ ($10,671,900K + $5,230,230K)
= 0.67
Sunrun Inc's debt-to-capital ratio has been fluctuating over the past five years. From 2019 to 2020, there was a significant increase in the ratio from 0.73 to 0.46, indicating a decrease in the company's reliance on debt relative to its total capital. However, there was a reversal in this trend in subsequent years, with the ratio increasing steadily to 0.68 as of December 31, 2023.
The rising debt-to-capital ratio suggests that Sunrun Inc has been increasing its debt levels compared to its total capital over the years. This could indicate a higher level of financial risk for the company as it becomes more leveraged. Investors and creditors may view a higher debt-to-capital ratio unfavorably as it may signal potential challenges in meeting debt obligations or interest payments.
It is important for the company to closely monitor and manage its debt levels to ensure financial stability and minimize risk. Additionally, factors such as interest rates, industry conditions, and overall economic environment should be considered when evaluating the implications of the debt-to-capital ratio on Sunrun Inc's financial health.
Peer comparison
Dec 31, 2023