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Sunrun (Sunrun) Degree of Financial Leverage : -43.58 (As of Mar. 2024)


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What is Sunrun Degree of Financial Leverage?

Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). Sunrun's Degree of Financial Leverage for the quarter that ended in Mar. 2024 was -43.58. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Sunrun's Degree of Financial Leverage or its related term are showing as below:

RUN's Degree of Financial Leverage is ranked better than
99.28% of 977 companies
in the Semiconductors industry
Industry Median: 0.98 vs RUN: -43.58

Sunrun Degree of Financial Leverage Historical Data

The historical data trend for Sunrun's Degree of Financial Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sunrun Degree of Financial Leverage Chart

Sunrun Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.15 -5.53 -1.41 7.78 -2.59

Sunrun Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Degree of Financial Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -31.39 -6.61 -5.62 -2.59 -43.58

Competitive Comparison of Sunrun's Degree of Financial Leverage

For the Solar subindustry, Sunrun's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sunrun's Degree of Financial Leverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Sunrun's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Sunrun's Degree of Financial Leverage falls into.



Sunrun Degree of Financial Leverage Calculation

Sunrun's Degree of Financial Leverage for the quarter that ended in Mar. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( -6.67 (Mar. 2024) / 0.07 (Mar. 2023) - 1 )/( -1883.041 (Mar. 2024) / -586.737 (Mar. 2023) - 1 )
=-96.2857/2.2093
=-43.58***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Sunrun  (NAS:RUN) Degree of Financial Leverage Explanation

Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.

The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.

Be Aware

The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.


Sunrun Degree of Financial Leverage Related Terms

Thank you for viewing the detailed overview of Sunrun's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Sunrun (Sunrun) Business Description

Industry
Traded in Other Exchanges
Address
225 Bush Street, Suite 1400, San Francisco, CA, USA, 94104
Sunrun is engaged in the design, development, installation, sale, ownership, and maintenance of residential solar energy systems in the United States. The company acquires customers directly and through relationships with various solar and strategic partners. The solar systems are constructed either by Sunrun or by Sunrun's partners and are owned by the company. Sunrun's customers typically enter into 20- to 25-year agreements to utilize its solar energy system. The company also sells solar energy systems and products, such as panels and racking, and solar leads generated to customers.
Executives
Danny Abajian officer: Chief Financial Officer C/O SUNRUN INC., 225 BUSH STREET, SUITE 1400, SAN FRANCISCO CA 94104
Paul S. Dickson officer: Chief Revenue Officer C/O SUNRUN INC., 225 BUSH STREET, SUITE 1400, SAN FRANCISCO CA 94104
Edward Harris Fenster director, officer: Chairman C/O SUNRUN INC., 595 MARKET STREET, 29TH FLOOR, SAN FRANCISCO CA 94105
Jeanna Steele officer: General Counsel C/O SUNRUN INC., 595 MARKET STREET, 29TH FLOOR, SAN FRANCISCO CA 94105
Lynn Michelle Jurich director, officer: Chief Executive Officer C/O SUNRUN INC., 595 MARKET STREET, 29TH FLOOR, SAN FRANCISCO CA 94105
Mary Powell director C/O SUNRUN INC., 595 MARKET STREET, 29TH FLOOR, SAN FRANCISCO CA 94105
Michelle Philpot officer: Chief Accounting Officer KANA SOFTWARE, INC., 181 CONSTITUTION DR., MENLO PARK CA 94025
Thomas Arthur Vonreichbauer officer: Chief Financial Officer C/O SUNRUN INC., 225 BUSH STREET, SUITE 1400, SAN FRANCISCO CA 94104
Manjula Talreja director C/O SUNRUN INC., 225 BUSH STREET, SUITE 1400, SAN FRANCISCO CA 94104
Christopher Dawson officer: Chief Operating Officer C/O SUNRUN INC., 595 MARKET STREET, 29TH FLOOR, SAN FRANCISCO CA 94105
Leslie A Dach director 702 S.W. 8TH STREET, BENTONVILLE AR 72716-0215
Sonita Lontoh director C/O SUNRUN INC., 225 BUSH STREET, SUITE 1400, SAN FRANCISCO CA 94104
David Bywater director, officer: CEO of Vivint Solar, Inc. 1850 WEST ASHTON BLVD, LEHI UT 84043
Gerald Alan Risk director C/O SUNRUN INC., SAN FRANCISCO CA 94105
Alan Ferber director