Sunrun Inc (RUN)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 20,450,200 | 20,027,100 | 20,490,600 | 19,728,300 | 19,268,800 | 18,568,100 | 17,800,600 | 17,255,100 | 16,483,300 | 16,089,700 | 15,428,800 | 14,886,000 | 14,382,900 | 6,306,830 | 6,005,040 | 5,938,510 | 5,806,340 | 5,472,020 | 5,207,380 | 4,939,680 |
| 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 |
| Financial leverage ratio | 3.91 | 3.57 | 3.11 | 3.05 | 2.87 | 2.81 | 2.80 | 2.75 | 2.64 | 2.59 | 2.51 | 2.41 | 2.37 | 6.10 | 6.76 | 6.81 | 6.02 | 5.90 | 5.69 | 5.34 |
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 over the past eight quarters, starting at 2.75 in Q1 2022 and reaching 3.91 in Q4 2023. This indicates that the company has been relying more on debt to finance its operations and growth over this period.
The gradual rise in the financial leverage ratio suggests that Sunrun Inc's debt levels have been increasing relative to its equity, potentially increasing its financial risk. A higher financial leverage ratio implies that the company is more leveraged, which can amplify both positive and negative financial performance outcomes.
Investors and stakeholders may closely monitor the trend in the financial leverage ratio to assess Sunrun Inc's ability to meet its debt obligations and manage the associated risks effectively. It is important for the company to strike a balance between leveraging debt for growth opportunities and maintaining a sustainable capital structure.
Peer comparison
Dec 31, 2023