Royal Caribbean Cruises Ltd (RCL)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	32.65	31.35	29.53	17.69	23.29
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	—	—	—	—	—

Based on the provided data for Royal Caribbean Cruises Ltd, the activity ratios can be analyzed as follows:

1. Inventory Turnover:
- Inventory turnover measures how efficiently a company manages its inventory. Higher turnover ratios indicate that inventory is selling quickly. Royal Caribbean Cruises Ltd had an inventory turnover of 23.29 in December 2020, which increased to 32.65 by December 2024. This shows an improvement in the efficiency of inventory management over the years, with inventory being sold more rapidly.

2. Receivables Turnover:
- Receivables turnover ratio reflects how effectively a company collects its accounts receivable. The absence of data for receivables turnover for the years 2020 to 2024 indicates that specific information on the collection of receivables is not available. Without this data, it is difficult to assess the effectiveness of Royal Caribbean Cruises Ltd in collecting payments from customers.

3. Payables Turnover:
- Payables turnover ratio measures how quickly a company pays its suppliers. Similar to receivables turnover, the lack of data for payables turnover for the years 2020 to 2024 suggests that specific information on the company's payment to suppliers is not provided. This prevents an assessment of the efficiency of Royal Caribbean Cruises Ltd in managing its payables.

4. Working Capital Turnover:
- Working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate sales. The absence of data for working capital turnover for the years 2020 to 2024 indicates that details on the company's working capital efficiency in generating sales are not available. Without this information, the evaluation of Royal Caribbean Cruises Ltd's effectiveness in utilizing working capital to drive revenue is limited.

In summary, based on the available inventory turnover data, Royal Caribbean Cruises Ltd has shown an improvement in inventory management efficiency over the years. However, the lack of data for receivables turnover, payables turnover, and working capital turnover restricts a comprehensive analysis of the company's overall activity ratios.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	11.18	11.64	12.36	20.63	15.67
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

Activity ratios, such as Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insights into how efficiently Royal Caribbean Cruises Ltd manages its operations.

The DOH for Royal Caribbean Cruises Ltd has shown a fluctuating trend over the years, decreasing from 20.63 days as of December 31, 2021, to 11.18 days as of December 31, 2024. This indicates that the company has been able to manage its inventory levels more efficiently, holding less inventory on hand to support its operations.

The DSO and Number of Days of Payables data are not provided, which limits our ability to analyze the efficiency of Royal Caribbean Cruises Ltd in collecting receivables and managing payables. Without this data, it is challenging to assess the company's ability to convert sales into cash quickly or manage its obligations to suppliers effectively.

Overall, the decreasing trend in DOH suggests that Royal Caribbean Cruises Ltd has been improving its inventory management efficiency, but a more comprehensive analysis would require additional information on DSO and Number of Days of Payables.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	0.31	0.06	0.09
Total asset turnover	0.44	0.40	0.26	0.05	0.07

The fixed asset turnover ratio for Royal Caribbean Cruises Ltd has exhibited fluctuations over the years. In 2020, the ratio was relatively low at 0.09, indicating that the company generated $0.09 in revenue for every dollar invested in fixed assets. This ratio decreased further in 2021 to 0.06, suggesting a less effective utilization of fixed assets to generate revenue. However, there was a significant improvement in 2022, with the ratio jumping to 0.31, showcasing a more efficient use of fixed assets to generate sales.

It's worth noting that the data for 2023 and 2024 is unavailable (represented as "—"), which limits a comprehensive analysis of the trend beyond 2022.

Moving on to the total asset turnover ratio, we observe a similar pattern. In 2020, the ratio stood at 0.07, indicating that the company generated $0.07 in revenue for every dollar of total assets. The ratio decreased in 2021 to 0.05, suggesting a decline in the efficiency of utilizing total assets to generate sales. However, there was a notable recovery in 2022, with the total asset turnover ratio increasing to 0.26, and further improvements in 2023 and 2024, reaching 0.40 and 0.44 respectively.

Overall, the trend in total asset turnover reflects an improvement in the company's ability to generate sales relative to its total assets over the years, while the fixed asset turnover ratio showed more volatility with a significant improvement in 2022 but limited trend analysis beyond that due to missing data.