Sunrun | Q2 shows improvements

Sunrun Inc (NSQ: RUN) is engaged in the development, installation, and sale of photovoltaic solar energy generation systems and battery energy storage products, primarily for residential customers. The company was established in 2007 and is headquartered in San Francisco, California.


(Source: Sunrun Inc)

Sunrun released their Q2 earnings on 03 August, showing improvements across its net margins and eased both its short-term and long-term liquidity rates. For the quarter, Sunrun reported $584.6m in revenue and a net loss of ($12.5m) - representing a net margin loss of (2.1%). Compared to last year's quarter, the company increased revenue by 45.9% and reduced its net losses by 69.8% - which was previously a net margin loss of (10.2%).

(Property of EcoShares)

Reflecting on 2021, Sunrun eventually broke into a net profit for its Q3, with a net income of $2.3m. This represented a net margin of 5.5%.

(Property of EcoShares)

Sunrun has a history of achieving profitability, despite a recent string of losses. In FY18 the company achieved a net profit of $27m (net margin of 3.6%) and again the following year with a net profit of $26m (net margin of 3%). Losses mounted up to ($173m) in FY20 with a net margin loss of (18.8%), which improved the following year to ($79m) with a lower net margin loss of (4.9%).


(Property of EcoShares)

Regarding Sunrun's liquidity, margins looked to be easing and achieved new records.

In the short term, the current assets and current liabilities can measure a company's ability to pay short-term debt or obligations due within one year. Sunrun's liquidity percentage in Q2 was 58.3% (current liabilities/current assets). This compared to last year's quarter, which was a cautious 80%.

(Property of EcoShares)

Sunrun's short-term liquidity has also been significantly improving when taking into account the last few years. The liquidity percentage was 79.2% in FY20 and 65.4% in FY21.

(Property of EcoShares)

Despite cash levels having fallen from $680m to $522m over the last year, total assets ramped up to a record $17,801m - with their total liabilities increasing at a slower rate in comparison. Their long-term liquidity margin for Q2 was 56.1% - improving from last year's quarter of 60.1% despite total liabilities being higher.


(Property of EcoShares)

Sunrun's long-term liquidity was 83.4% in FY19, improving to 57.7% in FY20, before slightly declining to 62.1% in FY21.

(Property of EcoShares)

Sunrun release their Q3 earnings for the year on approximately 02 November, 2022.

(Source: Google Finance)