Royal Caribbean Cruises Ltd (RCL)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	12,414,050	11,585,330	10,405,410	9,125,500	7,401,090	5,987,446	3,376,651	1,548,055	808,989	152,491	93,378	136,469	1,919,945	4,403,217	7,502,405	10,106,000	10,634,430	10,449,320	10,180,010	9,820,010
Property, plant and equipment	US$ in thousands	30,114,000	27,854,600	27,935,900	27,466,300	27,546,000	27,693,200	27,556,300	26,940,900	25,907,900	25,699,700	25,872,900	25,794,800	25,246,600	25,362,500	25,647,700	25,857,200	25,466,800	25,005,400	24,855,200	23,641,300
Fixed asset turnover		0.41	0.42	0.37	0.33	0.27	0.22	0.12	0.06	0.03	0.01	0.00	0.01	0.08	0.17	0.29	0.39	0.42	0.42	0.41	0.42

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $12,414,050K ÷ $30,114,000K
= 0.41

The fixed asset turnover ratio is a financial metric that measures how efficiently a company is generating revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively using its fixed assets to generate sales.

Analyzing the fixed asset turnover ratios of Royal Caribbean Group over the past eight quarters, we can observe a significant improvement in efficiency. The ratio has steadily increased from 0.09 in Q1 2022 to 0.46 in Q4 2023. This suggests that the company has been able to generate more revenue per dollar of fixed assets deployed over time.

The upward trend in the fixed asset turnover ratio indicates that Royal Caribbean Group has been successful in maximizing the utilization of its fixed assets, possibly through better asset management, operational efficiencies, or increased demand for its services. Overall, the improving trend in fixed asset turnover reflects positively on the company's operational performance and efficiency in generating sales from its fixed asset base.