Sunrun Inc (RUN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 20,450,200 | 19,268,800 | 16,483,300 | 14,382,900 | 5,806,340 |
| Total stockholders’ equity | US$ in thousands | 5,230,230 | 6,708,120 | 6,254,740 | 6,077,910 | 964,731 |
| Financial leverage ratio | 3.91 | 2.87 | 2.64 | 2.37 | 6.02 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,450,200K ÷ $5,230,230K
= 3.91
The financial leverage ratio of Sunrun Inc has shown an increasing trend from 2.37 in 2020 to 3.91 in 2023. This indicates that over the years, the company has been relying more on debt financing compared to equity financing to support its operations and growth.
A high financial leverage ratio suggests that the company has a higher proportion of debt in its capital structure, which can amplify returns on equity when business is good but also increase the risk of financial distress during economic downturns.
It is important for investors and creditors to closely monitor Sunrun Inc's financial leverage ratio to assess the company's ability to meet its debt obligations and manage its overall financial risk effectively.
Peer comparison
Dec 31, 2023