Royal Caribbean Cruises Ltd (RCL)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	12,346,000	7,385,240	100,364	1,037,510	10,564,600
Property, plant and equipment	US$ in thousands	30,114,000	27,546,000	25,907,900	25,246,600	25,466,800
Fixed asset turnover		0.41	0.27	0.00	0.04	0.41

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $12,346,000K ÷ $30,114,000K
= 0.41

Royal Caribbean Group's fixed asset turnover ratio has fluctuated significantly over the past five years. The ratio was at its highest in 2019 at 0.43, indicating that the company generated $0.43 in revenue for every dollar invested in fixed assets.

However, there was a sharp decline in 2021, with the fixed asset turnover dropping to 0.06, suggesting that the company's fixed assets were not efficiently utilized to generate revenue during that period.

The ratio slightly improved in 2022 to 0.32 but remained relatively low. By the end of 2023, the fixed asset turnover increased to 0.46, indicating a better utilization of fixed assets to generate revenue compared to the previous year.

Overall, the fluctuation in the fixed asset turnover ratio suggests that Royal Caribbean Group may need to focus on optimizing the use of its fixed assets to improve operational efficiency and profitability in the long run.