Sunrun Inc (RUN)
Debt-to-equity 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-equity ratio | 2.04 | 1.25 | 1.04 | 0.79 | 2.30 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $10,671,900K ÷ $5,230,230K
= 2.04
The debt-to-equity ratio of Sunrun Inc has fluctuated over the past five years, indicating changes in the company's capital structure and financial leverage.
In 2019, the ratio was high at 2.71, indicating that the company had a higher proportion of debt relative to equity. This level of leverage may pose risks in terms of financial stability and solvency.
In 2020, there was a significant decrease in the debt-to-equity ratio to 0.85, suggesting a decrease in the company's reliance on debt financing and a stronger equity position. This could indicate improved financial health and reduced risk exposure.
However, in 2021, the ratio increased to 1.09, indicating a slight shift towards higher debt levels compared to equity. This change might suggest a strategic decision to utilize more debt financing for growth or investment opportunities.
By 2022, the debt-to-equity ratio further increased to 1.30, signifying a continued trend towards higher leverage. This could indicate the company's increasing reliance on debt to fuel its operations or expansion.
The most recent ratio in 2023 stands at 2.11, showing a significant jump from the previous year. This sharp increase suggests a substantial increase in debt relative to equity, which may raise concerns about the company's financial risk and ability to service its debt obligations.
Overall, the fluctuating trend in Sunrun Inc's debt-to-equity ratio over the years indicates varying levels of financial leverage and capital structure decisions that may impact the company's financial health and risk profile. An in-depth analysis of the reasons behind these changes would provide further insights into the company's strategic direction and financial performance.
Peer comparison
Dec 31, 2023