Sunrun Inc (RUN)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -1,978,646 | -1,970,305 | -759,070 | -708,436 | -662,192 | -680,970 | -682,650 | -669,112 | -666,187 | -714,651 | -638,916 | -580,616 | -465,108 | -257,103 | -255,257 | -234,586 | -215,740 | -173,967 | -137,170 | -109,341 |
| Interest expense (ttm) | US$ in thousands | 496,346 | 316,213 | 145,496 | 248,007 | 197,563 | 196,086 | 195,750 | 92,941 | 107,406 | 216,262 | 216,200 | 216,171 | 109,669 | 1,240 | 1,667 | 1,893 | 1,915 | 1,534 | 1,101 | 32,540 |
| Interest coverage | -3.99 | -6.23 | -5.22 | -2.86 | -3.35 | -3.47 | -3.49 | -7.20 | -6.20 | -3.30 | -2.96 | -2.69 | -4.24 | -207.34 | -153.12 | -123.92 | -112.66 | -113.41 | -124.59 | -3.36 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-1,978,646K ÷ $496,346K
= -3.99
The interest coverage ratio for Sunrun Inc has shown a declining trend over the past eight quarters, indicating the company's increasing difficulty in meeting its interest payments with its operating income. The ratios have consistently been below 1, with the most recent quarter showing an interest coverage of -1.26, suggesting that Sunrun's operating income was insufficient to cover its interest expenses by 1.26 times. This raises concerns about the company's financial health and ability to service its debt obligations. Further analysis of the company's profitability and debt levels would be necessary to fully assess the implications of these low interest coverage ratios.
Peer comparison
Dec 31, 2023