Sunrun Inc (RUN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 7.79 | 4.19 | 4.00 | 4.02 | 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 |
The solvency ratios of Sunrun Inc indicate a strong financial position with minimal debt relative to its assets, capital, and equity. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have consistently remained at 0.00 across multiple reporting periods, indicating that the company is not heavily reliant on debt to finance its operations.
Additionally, the financial leverage ratio, which measures the extent to which the company is using debt to finance its assets, started at a relatively high level of 6.81 in March 2020 but showed a significant decrease to 2.37 by December 2020. Since then, the financial leverage ratio has remained relatively stable, ranging between 2.37 and 4.19, which indicates that Sunrun Inc has been managing its debt levels effectively and maintaining a healthy balance between debt and equity in its capital structure.
Overall, based on the solvency ratios provided, Sunrun Inc appears to have a sound financial footing with low debt levels and a conservative approach to leverage, which bodes well for its long-term financial stability and sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Sunrun Inc's interest coverage ratio over the past few years has shown a concerning trend. The ratio has consistently been negative, indicating that the company's earnings before interest and taxes (EBIT) are insufficient to cover its interest expenses. This signifies a potential risk as the company may face challenges in meeting its interest obligations with its current level of earnings.
From March 31, 2020, to December 31, 2024, the interest coverage ratio has fluctuated, with values ranging from -0.87 to -4.14. The lowest point was recorded in December 31, 2024, at -4.14, suggesting a significant strain on the company's ability to service its debt.
The declining trend in the interest coverage ratio indicates worsening financial health and raises concerns about Sunrun's ability to manage its debt obligations effectively. Investors and creditors may view this as a red flag, signaling potential liquidity issues and heightened financial risk for the company.