Sunrun Inc (RUN)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 10,671,900 | 10,237,500 | 9,603,840 | 8,926,500 | 8,399,150 | 7,985,160 | 7,602,940 | 7,139,160 | 6,502,890 | 6,136,810 | 5,609,560 | 5,274,220 | 4,796,140 | 2,362,060 | 2,318,160 | 2,366,800 | 2,219,590 | 2,015,910 | 1,688,990 | 1,797,280 |
| Total stockholders’ equity | US$ in thousands | 5,230,230 | 5,611,110 | 6,597,450 | 6,467,760 | 6,708,120 | 6,618,500 | 6,346,680 | 6,264,340 | 6,254,740 | 6,223,110 | 6,156,460 | 6,165,560 | 6,077,910 | 1,033,540 | 888,167 | 872,473 | 964,731 | 926,829 | 915,545 | 924,540 |
| Debt-to-capital ratio | 0.67 | 0.65 | 0.59 | 0.58 | 0.56 | 0.55 | 0.55 | 0.53 | 0.51 | 0.50 | 0.48 | 0.46 | 0.44 | 0.70 | 0.72 | 0.73 | 0.70 | 0.69 | 0.65 | 0.66 |
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
The debt-to-capital ratio of Sunrun Inc has been gradually increasing over the past eight quarters, indicating a higher proportion of debt relative to the company's total capital structure. The ratio rose from 0.54 in Q1 2022 to 0.68 in Q4 2023. This trend suggests that Sunrun has been relying more on debt financing compared to its equity financing over time.
A debt-to-capital ratio above 0.5 typically implies that the company has more debt than equity in its capital structure. Sunrun's increasing ratio may indicate a growing reliance on debt to finance its operations, investments, or acquisitions. While debt can provide tax benefits and leverage for growth, a high debt-to-capital ratio also increases financial risk and interest expenses, which could potentially impact the company's overall financial health and flexibility in the long term.
It would be important for stakeholders to monitor Sunrun's debt management strategies and overall financial performance closely to assess the potential implications of its evolving debt-to-capital ratio on the company's stability and growth prospects.
Peer comparison
Dec 31, 2023