Royal Caribbean Cruises Ltd (RCL)

Days of sales outstanding (DSO)

		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
Receivables turnover		30.65	32.17	27.72	24.07	13.94	11.20	5.98	3.06	1.98	0.38	0.27	0.60	6.76	26.65	36.43	45.75	34.77	29.94	29.86	26.19
DSO	days	11.91	11.35	13.17	15.17	26.19	32.58	61.08	119.34	184.11	950.81	1,348.77	606.44	54.02	13.70	10.02	7.98	10.50	12.19	12.22	13.94

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 30.65
= 11.91

The days of sales outstanding (DSO) for Royal Caribbean Group have shown a fluctuating trend over the past eight quarters. In Q1 2022, the DSO was at its highest level of 72.47 days, indicating that on average, it took the company over two months to collect payments from its customers. This prolonged collection period may suggest potential issues with credit policies or customer payment behaviors during that period.

Subsequently, there was a significant improvement in the DSO over the following quarters, with a noticeable decrease to 44.04 days in Q2 2022 and further to 27.02 days in Q3 2022. This positive trend indicates an enhancement in the company's collection efficiency and potentially more effective credit management practices.

In the most recent quarters, Q4 2022 to Q4 2023, the DSO remained relatively stable in the range of 10.63 to 12.98 days. This suggests that Royal Caribbean Group has been consistently efficient in collecting payments from customers during these periods.

Overall, considering the historical data, it appears that Royal Caribbean Group has made significant progress in optimizing its accounts receivable management and improving its cash flow cycle by reducing DSO. Maintaining the current DSO levels or further reducing them in the future would indicate continued effectiveness in managing receivables and enhancing liquidity.