Royal Caribbean Cruises Ltd (RCL)

Payables 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
Cost of revenue (ttm)	US$ in thousands	11,586,000	8,390,280	8,179,390	7,841,820	7,147,260	9,015,630	7,794,190	6,414,190	5,351,353	4,013,040	3,541,846	4,068,716	6,557,243	8,127,176	9,431,410	10,103,690	8,879,970	8,618,250	8,318,640	7,966,370
Payables	US$ in thousands	792,000	715,386	692,011	714,837	647,000	623,565	760,864	668,158	545,978	461,411	384,683	340,872	353,422	421,023	661,427	1,414,390	563,706	538,949	531,788	497,180
Payables turnover		14.63	11.73	11.82	10.97	11.05	14.46	10.24	9.60	9.80	8.70	9.21	11.94	18.55	19.30	14.26	7.14	15.75	15.99	15.64	16.02

December 31, 2023 calculation

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

The payables turnover ratio for Royal Caribbean Group has shown an increasing trend over the last eight quarters, indicating that the company is managing its payables efficiently. In Q4 2023, the payables turnover ratio was 6.03, which means that the company paid off its accounts payable approximately 6.03 times during that quarter. This suggests that Royal Caribbean Group is able to settle its outstanding obligations to suppliers relatively quickly.

The consistent increase in the payables turnover ratio from Q1 2022 to Q4 2023 reflects improving efficiency in managing its accounts payable. The ratio has more than doubled from 1.99 in Q1 2022 to 6.03 in Q4 2023. This upward trend may indicate that the company is negotiating favorable payment terms with its suppliers or streamlining its payment processes.

Overall, the upward trend in the payables turnover ratio for Royal Caribbean Group signals effective management of its accounts payable, indicating good liquidity and potentially favorable relationships with its suppliers.