Royal Caribbean Cruises Ltd (RCL)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 35.46 | 36.18 | 38.57 | 37.15 | 32.77 | 31.74 | 34.67 | 32.64 | 29.53 | 25.16 | 21.06 | 19.83 | 17.69 | 12.55 | 9.65 | 12.88 | 23.29 | 27.95 | 34.70 | 34.66 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.28 | 0.09 | — | — | — | — |
The activity ratios of Royal Caribbean Cruises Ltd provide insight into the company's efficiency in managing its inventory, receivables, payables, and working capital.
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company is managing its inventory by showing how many times inventory is sold and replaced over a period.
- Royal Caribbean Cruises Ltd's inventory turnover has fluctuated over the years but generally remained at a healthy level, indicating effective management of inventory levels.
2. Receivables Turnover:
- The receivables turnover ratio indicates how efficiently the company collects outstanding receivables from its customers.
- The data provided shows that receivables turnover ratios are not available for the periods under consideration, meaning there is no visibility into the company's effectiveness in collecting receivables.
3. Payables Turnover:
- The payables turnover ratio reflects how quickly the company is paying its suppliers and vendors.
- Similar to receivables turnover, payables turnover ratios are not available in the data provided, making it difficult to assess the company's payment practices.
4. Working Capital Turnover:
- The working capital turnover ratio shows how efficiently the company is utilizing its working capital to generate sales.
- The data shows that there are limited values available for the working capital turnover ratio, with only a few periods showing values above zero. This suggests that the company may not be effectively utilizing its working capital to drive sales during these periods.
In conclusion, while Royal Caribbean Cruises Ltd has shown satisfactory performance in managing its inventory turnover, the lack of data availability for receivables turnover, payables turnover, and working capital turnover limits a comprehensive analysis of the company's activity ratios.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 10.29 | 10.09 | 9.46 | 9.82 | 11.14 | 11.50 | 10.53 | 11.18 | 12.36 | 14.51 | 17.33 | 18.41 | 20.63 | 29.08 | 37.83 | 28.34 | 15.67 | 13.06 | 10.52 | 10.53 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The activity ratios of Royal Caribbean Cruises Ltd provide insights into the efficiency of the company in managing its inventory and receivables.
1. Days of Inventory on Hand (DOH): The DOH ratio measures how efficiently the company manages its inventory. A lower DOH indicates that inventory is being sold quickly, while a higher DOH suggests slower inventory turnover. Royal Caribbean Cruises Ltd's DOH showed a decreasing trend from 2020 to 2024, indicating a more efficient management of inventory over time. The company reduced its DOH from 15.67 days in December 2020 to 10.29 days in December 2024, reflecting improved inventory turnover.
2. Days of Sales Outstanding (DSO): DSO measures how long it takes for the company to collect payment from its customers. As the data provided shows "— days" for all periods, it indicates that DSO information is not available or relevant for analysis. Without this data, it is challenging to assess the efficiency of Royal Caribbean Cruises Ltd in collecting receivables.
3. Number of Days of Payables: The number of days of payables ratio reflects how long the company takes to pay its suppliers. The absence of data for this ratio suggests that information on the company's payment period to suppliers is not provided, making it difficult to evaluate the efficiency of Royal Caribbean Cruises Ltd in managing its payables.
In conclusion, based on the available data, Royal Caribbean Cruises Ltd has shown improvement in its inventory turnover over the years, as reflected in the decreasing trend of Days of Inventory on Hand. While the information on Days of Sales Outstanding and Number of Days of Payables is not available, focusing on improving inventory management can further enhance the company's operational efficiency.
See also:
Royal Caribbean Cruises Ltd Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 0.46 | 0.42 | 0.38 | 0.31 | 0.26 | 0.17 | 0.09 | 0.06 | 0.02 | 0.00 | 0.01 | 0.09 | 0.19 | 0.30 | 0.41 |
| Total asset turnover | 0.44 | 0.43 | 0.41 | 0.42 | 0.40 | 0.40 | 0.36 | 0.32 | 0.26 | 0.22 | 0.14 | 0.08 | 0.05 | 0.02 | 0.00 | 0.01 | 0.07 | 0.15 | 0.24 | 0.32 |
The Fixed Asset Turnover ratio for Royal Caribbean Cruises Ltd has shown a declining trend from March 2020 to June 2021, indicating that the company's ability to generate revenue from its fixed assets decreased over this period. However, the ratio started to improve from March 2022 onwards, reaching its peak at December 2023. This indicates that the company became more efficient in utilizing its fixed assets to generate sales.
On the other hand, the Total Asset Turnover ratio also followed a decreasing trend up to March 2021, showing a decline in the company's overall efficiency in generating sales from its total assets. However, a positive turnaround was observed from March 2022, with the ratio steadily increasing through December 2024. This indicates improved efficiency in generating revenue from the company's total assets.
Overall, the improvement in both Fixed Asset Turnover and Total Asset Turnover ratios from March 2022 suggests that Royal Caribbean Cruises Ltd has enhanced its asset utilization and efficiency in generating revenue, potentially signaling positive operational performance and effective management of assets.
See also:
Royal Caribbean Cruises Ltd Long-term (Investment) Activity Ratios (Quarterly Data)