Royal Caribbean Cruises Ltd (RCL)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	11,586,000	9,594,300	5,364,290	6,642,820	8,879,960
Payables	US$ in thousands	792,000	647,000	545,978	353,422	563,706
Payables turnover		14.63	14.83	9.83	18.80	15.75

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $11,586,000K ÷ $792,000K
= 14.63

The payables turnover ratio for Royal Caribbean Group has fluctuated over the past five years. In 2023, the payables turnover ratio increased to 6.03, indicating that the company was able to convert its accounts payable into purchases or expenses approximately 6.03 times during the year. This suggests that the company managed its accounts payable more efficiently in 2023 compared to the previous year.

In 2021, the payables turnover ratio was 1.60, reflecting a significant decrease from the previous year. This could indicate that Royal Caribbean Group took longer to pay off its suppliers or had a lower level of purchases/expenses relative to its accounts payable.

It is important to note that the payables turnover ratio is a measure of efficiency in managing accounts payable. A higher ratio typically indicates that the company pays its suppliers more quickly or has a higher level of purchases/expenses relative to its accounts payable. Conversely, a lower ratio may suggest a company takes longer to pay its suppliers or has a lower level of purchases/expenses compared to its accounts payable.

Overall, Royal Caribbean Group's payables turnover ratio has shown variability over the years, with a notable increase in 2023. This ratio provides insight into the company's management of accounts payable and its relationships with suppliers.