Sunrun Inc (RUN)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -3,514,119 | -692,454 | -1,741,608 | -1,895,297 | -2,057,891 | -1,905,443 | -676,318 | -575,297 | -402,561 | -419,917 | -538,203 | -589,916 | -665,077 | -700,714 | -614,213 | -539,197 | -454,084 | -257,201 | -258,465 | -239,034 |
| Interest expense (ttm) | US$ in thousands | 848,366 | 796,807 | 752,480 | 702,450 | 652,989 | 604,469 | 550,395 | 496,263 | 445,819 | 401,848 | 373,730 | 345,684 | 327,700 | 316,953 | 279,225 | 254,947 | 230,601 | 198,699 | 191,242 | 182,830 |
| Interest coverage | -4.14 | -0.87 | -2.31 | -2.70 | -3.15 | -3.15 | -1.23 | -1.16 | -0.90 | -1.04 | -1.44 | -1.71 | -2.03 | -2.21 | -2.20 | -2.11 | -1.97 | -1.29 | -1.35 | -1.31 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-3,514,119K ÷ $848,366K
= -4.14
The interest coverage ratio for Sunrun Inc has shown a consistently negative trend from March 2020 to December 2024. The negative values indicate that the company's operating income is not sufficient to cover its interest expenses during the respective periods. The ratio has fluctuated over time but generally remained below 0, which implies a higher financial risk as the company is struggling to meet its interest obligations from its earnings. This downward trend in interest coverage raises concerns about the company's ability to service its debt and may indicate potential financial distress if the situation persists without improvement. Further analysis of the company's profitability, debt levels, and operational efficiency is recommended to better understand the factors contributing to this unfavorable interest coverage trend.
Peer comparison
Dec 31, 2024