Royal Caribbean Cruises Ltd (RCL)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	8,652,000	7,775,000	6,614,340	2,657,510	2,765,110
Inventory	US$ in thousands	265,000	248,000	224,016	150,224	118,703
Inventory turnover		32.65	31.35	29.53	17.69	23.29

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $8,652,000K ÷ $265,000K
= 32.65

Based on the data provided, the inventory turnover for Royal Caribbean Cruises Ltd has shown fluctuations over the past five years.

- As of December 31, 2020, the inventory turnover ratio was 23.29, indicating that the company sold and replaced its inventory approximately 23.29 times during that year.
- By December 31, 2021, the inventory turnover decreased to 17.69, suggesting a slowdown in the rate at which the company was able to sell and replenish its inventory.
- However, the inventory turnover ratio began to improve in the following years, reaching 29.53 by December 31, 2022, 31.35 by December 31, 2023, and 32.65 by December 31, 2024. These higher ratios indicate a more efficient management of inventory, with the company selling and restocking its inventory at a faster pace.

Overall, the trend in inventory turnover reflects fluctuations in the company's inventory management efficiency over the years, with improvements seen in recent periods. A higher inventory turnover ratio generally indicates that a company is effectively managing its inventory levels and converting stock into sales efficiently.