Sunrun Inc (RUN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 19,897,900 | 20,450,200 | 19,268,800 | 16,483,300 | 14,382,900 |
| Total stockholders’ equity | US$ in thousands | 2,554,210 | 5,230,230 | 6,708,120 | 6,254,740 | 6,077,910 |
| Financial leverage ratio | 7.79 | 3.91 | 2.87 | 2.64 | 2.37 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,897,900K ÷ $2,554,210K
= 7.79
Based on the provided data, Sunrun Inc's financial leverage ratio has shown an increasing trend over the years, starting at 2.37 as of December 31, 2020, and reaching 7.79 by December 31, 2024. This indicates that the company's reliance on debt to finance its operations and growth has been escalating significantly over the period in question. The substantial increase in the leverage ratio from 2020 to 2024 suggests that Sunrun has been taking on more debt relative to its equity, which may raise concerns about the company's financial risk and potential vulnerability to economic downturns or interest rate fluctuations. It could also indicate a shift in the company's capital structure towards a more debt-heavy composition. Further analysis and monitoring of Sunrun's debt levels and overall financial health would be advisable to assess the implications of this trend on the company's sustainability and long-term performance.
Peer comparison
Dec 31, 2024