Royal Caribbean Cruises Ltd (RCL)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	497,000	1,935,000	2,701,770	3,684,470	243,738
Short-term investments	US$ in thousands	25,000	5	54,184	70,082	21,751
Total current liabilities	US$ in thousands	9,401,000	8,573,000	7,285,680	4,537,120	7,952,900
Cash ratio		0.06	0.23	0.38	0.83	0.03

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($497,000K + $25,000K) ÷ $9,401,000K
= 0.06

The cash ratio of Royal Caribbean Group has fluctuated over the past five years. In 2023, the cash ratio stands at 0.12, exhibiting a significant decrease from the previous year's ratio of 0.29. This indicates that the company's ability to cover its short-term liabilities solely with cash and cash equivalents has decreased.

Looking back further, in 2021, the cash ratio was 0.42, reflecting a strong position in terms of liquidity compared to 2023. The highest cash ratio was observed in 2020 at 0.86, indicating the highest level of liquidity among the past five years. In contrast, the lowest cash ratio was recorded in 2019 at 0.09, implying a relatively weak ability to cover short-term liabilities with readily available cash.

Overall, the trend in Royal Caribbean Group's cash ratio suggests some volatility in its liquidity position over the years. The decreasing trend from 2020 to 2023 might signal the need for the company to manage its cash resources more effectively to ensure sufficient liquidity to meet its short-term obligations.