Royal Caribbean Cruises Ltd (RCL)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	46.72	34.74	37.88	35.44	31.91	38.01	34.02	35.74	35.62	28.18	26.65	34.07	55.24	57.06	61.81	56.86	54.78	51.54	49.51	50.44
Receivables turnover	30.65	32.17	27.72	24.07	13.94	11.20	5.98	3.06	1.98	0.38	0.27	0.60	6.76	26.65	36.43	45.75	34.77	29.94	29.86	26.19
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
Working capital turnover	—	—	—	—	—	—	—	—	—	—	0.28	0.06	—	—	—	—	—	—	—	—

The activity ratios of Royal Caribbean Group over the past eight quarters show varying trends.

1. Inventory turnover has steadily increased from Q1 2022 to Q2 2023, indicating the company's ability to efficiently manage its inventory levels and sell products. The latest ratio of 20.97 suggests that inventory is turning over approximately 21 times during the quarter.

2. Receivables turnover has also shown an increasing trend, reaching its peak in Q4 2023. This indicates that Royal Caribbean Group is collecting its outstanding receivables more quickly, with the latest ratio of 34.32 reflecting that receivables are turning over about 34 times in the quarter.

3. Payables turnover has remained relatively stable, fluctuating slightly throughout the periods. The ratio indicates the efficiency with which the company is paying its suppliers, with the latest figure of 6.03 implying that payables are turning over approximately 6 times during the quarter.

4. Working capital turnover data is not provided in the table, so analysis of this particular ratio's trend is not possible based on the information available.

Overall, the improving trends in inventory turnover and receivables turnover demonstrate operational efficiency and effective management of assets and liabilities by Royal Caribbean Group. The stable payables turnover also suggests a consistent approach to managing payments to suppliers.

Average number of days

		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
Days of inventory on hand (DOH)	days	7.81	10.51	9.64	10.30	11.44	9.60	10.73	10.21	10.25	12.95	13.69	10.71	6.61	6.40	5.91	6.42	6.66	7.08	7.37	7.24
Days of sales outstanding (DSO)	days	11.91	11.35	13.17	15.17	26.19	32.58	61.08	119.34	184.11	950.81	1,348.77	606.44	54.02	13.70	10.02	7.98	10.50	12.19	12.22	13.94
Number of days of payables	days	24.95	31.12	30.88	33.27	33.04	25.25	35.63	38.02	37.24	41.97	39.64	30.58	19.67	18.91	25.60	51.10	23.17	22.83	23.33	22.78

Days of inventory on hand (DOH) measures how quickly a company is able to sell its inventory. A lower DOH indicates that the company is selling its inventory faster, which is generally positive as it indicates efficient inventory management. Royal Caribbean Group's DOH has been decreasing over the quarters, which suggests an improvement in their inventory management efficiency.

Days of sales outstanding (DSO) measures how quickly a company collects its accounts receivable. A lower DSO indicates faster collection, which is preferable as it signifies efficient credit management. Royal Caribbean Group's DSO has been decreasing over the quarters, indicating an improvement in their accounts receivable collection efficiency.

Number of days of payables measures the average number of days it takes a company to pay its bills to suppliers. A higher number of days of payables suggests that the company is taking longer to pay its bills, which could indicate a cash flow advantage. Royal Caribbean Group's number of days of payables has been decreasing over the quarters, which may indicate that the company is paying its bills more promptly or negotiating better payment terms with suppliers.

Overall, the trends in Royal Caribbean Group's activity ratios show improvements in inventory management efficiency, accounts receivable collection efficiency, and potential positive cash flow implications from reduced payables days over the quarters. These trends reflect positively on the company's operations and financial management.

Long-term

	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
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
Total asset turnover	0.35	0.35	0.32	0.28	0.22	0.18	0.10	0.05	0.03	0.00	0.00	0.00	0.06	0.14	0.23	0.30	0.35	0.35	0.34	0.34

The fixed asset turnover ratio for Royal Caribbean Group has shown a consistent improvement over the past eight quarters, indicating that the company is becoming more efficient in generating revenue from its fixed assets. The ratio increased from 0.09 in Q1 2022 to 0.46 in Q4 2023, reflecting a significant upward trend. This suggests that Royal Caribbean is effectively utilizing its fixed assets to generate sales.

Similarly, the total asset turnover ratio also demonstrates a positive trend, increasing from 0.08 in Q1 2022 to 0.40 in Q4 2023. This indicates that the company is generating more revenue in relation to its total assets, reflecting general efficiency in asset utilization across the board. The improvement in this ratio suggests that Royal Caribbean is effectively managing its assets to generate sales and drive overall business performance.

Overall, the upward trends in both fixed asset turnover and total asset turnover ratios for Royal Caribbean Group indicate that the company is effectively managing its assets and generating revenue efficiently, which is a positive sign for its long-term financial health and operational efficiency.