Sunrun Inc (RUN)

Solvency ratios

	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
Debt-to-assets ratio	0.52	0.51	0.47	0.45	0.44	0.43	0.43	0.41	0.39	0.38	0.36	0.35	0.33	0.37	0.39	0.40	0.38	0.37	0.32	0.36
Debt-to-capital ratio	0.67	0.65	0.59	0.58	0.56	0.55	0.55	0.53	0.51	0.50	0.48	0.46	0.44	0.70	0.72	0.73	0.70	0.69	0.65	0.66
Debt-to-equity ratio	2.04	1.82	1.46	1.38	1.25	1.21	1.20	1.14	1.04	0.99	0.91	0.86	0.79	2.29	2.61	2.71	2.30	2.18	1.84	1.94
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

Based on the provided solvency ratios for Sunrun Inc, we can observe the following trends:

1. Debt-to-assets ratio:
The debt-to-assets ratio has been gradually increasing over the quarters, from 0.45 in Q4 2022 to 0.54 in Q4 2023. This indicates that a larger proportion of the company's assets are financed by debt.

2. Debt-to-capital ratio:
Similarly, the debt-to-capital ratio has also been on an upward trend, increasing from 0.57 in Q4 2022 to 0.68 in Q4 2023. This suggests that the company is relying more on debt to finance its operations and investments.

3. Debt-to-equity ratio:
The debt-to-equity ratio has shown a consistent increase, from 1.19 in Q1 2022 to 2.11 in Q4 2023. This indicates that the company's reliance on debt relative to equity has been rising significantly over the period.

4. Financial leverage ratio:
The financial leverage ratio has also been increasing consistently over the quarters, from 2.75 in Q1 2022 to 3.91 in Q4 2023. This implies that the company's financial risk has been rising as leverage levels increase.

Overall, the trend in the solvency ratios of Sunrun Inc indicates a growing reliance on debt financing, which may increase the company's financial risk and impact its ability to weather economic downturns or challenging market conditions. It is important for stakeholders to closely monitor these trends and assess the company's ability to manage its debt levels effectively.

Coverage ratios

	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
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

Sunrun Inc's interest coverage ratio has been declining over the past eight quarters, indicating a deteriorating ability to cover its interest expenses with its operating income. The negative values suggest that the company's operating income is insufficient to meet its interest obligations, raising concerns about its financial health and ability to service its debts. The consistent negative trend in the interest coverage ratio raises flags about the company's financial sustainability and may indicate potential liquidity challenges or operational inefficiencies. Sunrun Inc may need to address its interest coverage issues to avoid potential financial distress and maintain investor confidence.