Royal Caribbean Cruises Ltd (RCL)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	388,000	497,000	1,935,000	2,701,770	3,684,470
Short-term investments	US$ in thousands	—	25,000	—	54,184	70,082
Total current liabilities	US$ in thousands	9,817,000	9,401,000	8,573,460	7,285,680	4,537,120
Cash ratio		0.04	0.06	0.23	0.38	0.83

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($388,000K + $—K) ÷ $9,817,000K
= 0.04

The cash ratio of Royal Caribbean Cruises Ltd has been gradually decreasing over the years. Starting at a relatively healthy level of 0.83 on December 31, 2020, the ratio declined to 0.38 by December 31, 2021, indicating a decreased ability to cover short-term liabilities with available cash and cash equivalents. The downward trend continued as the ratio dropped to 0.23 by December 31, 2022, and further decreased to 0.06 by December 31, 2023, suggesting potential liquidity challenges. By December 31, 2024, the cash ratio stood at 0.04, signaling a significant decline in the company's liquid assets relative to its current liabilities. This trend may raise concerns about the company's short-term liquidity position and its ability to meet its immediate financial obligations solely with its existing cash reserves.