Royal Caribbean Cruises Ltd (RCL)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	12,346,000	7,385,240	100,364	1,037,510	10,564,600
Receivables	US$ in thousands	405,000	531,000	408,067	284,149	305,821
Receivables turnover		30.48	13.91	0.25	3.65	34.55

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $12,346,000K ÷ $405,000K
= 30.48

The receivables turnover ratio for Royal Caribbean Group has fluctuated significantly over the past five years. In 2023, it stands at 34.32, indicating that the company collected its accounts receivable approximately 34.32 times during the year. This represents a significant improvement from 2022 when the ratio was 16.65. In 2021, the ratio was notably lower at 3.75, suggesting that the company took longer to collect its receivables that year.

The sharp increase in 2023 compared to the prior year could signal more efficient collections processes or a strategic focus on managing receivables effectively. In 2020 and 2019, the ratios were 7.77 and 35.81, respectively. The 2019 ratio was similar to the 2023 ratio, indicating that the company was efficient in collecting its receivables during that period.

Overall, the trend in the receivables turnover ratio for Royal Caribbean Group shows variability, with the company's ability to convert receivables into cash improving significantly in 2023 compared to the previous year. It would be essential to further investigate the underlying reasons for these fluctuations to assess the effectiveness of the company's accounts receivable management.