Royal Caribbean Cruises Ltd (RCL)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	388,000	418,000	391,000	437,000	497,000	600,117	726,424	1,226,870	1,935,000	1,566,210	2,102,200	1,968,500	2,701,770	3,289,330	4,250,370	5,091,460	3,684,470	3,016,790	4,146,690	3,890,810
Short-term investments	US$ in thousands	—	—	—	—	25,000	—	—	—	—	—	—	178,161	54,184	70,407	56,230	149	261	—	—	—
Total current liabilities	US$ in thousands	9,817,000	9,631,000	9,894,000	9,905,000	9,401,000	9,241,680	9,666,860	9,441,540	8,573,460	9,793,990	11,719,400	8,007,160	7,285,680	5,242,920	4,679,720	3,314,830	4,537,120	4,625,460	4,736,910	8,982,370
Cash ratio		0.04	0.04	0.04	0.04	0.06	0.06	0.08	0.13	0.23	0.16	0.18	0.27	0.38	0.64	0.92	1.54	0.81	0.65	0.88	0.43

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 shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

The trend of the cash ratio indicates the company's liquidity position. From the data provided, we observe that the cash ratio has varied between 0.04 and 1.54 during this period. A higher cash ratio implies a better ability to cover short-term obligations with cash on hand, indicating stronger liquidity.

Royal Caribbean Cruises Ltd experienced an improvement in its cash ratio from March 31, 2021, to June 30, 2021, where it reached a peak of 1.54, reflecting a significant increase in its cash reserves compared to its short-term liabilities at that time. However, the cash ratio declined subsequently and fluctuated between 0.04 and 0.92 until December 31, 2024.

The downward trend in the cash ratio from 1.54 to 0.04 by June 30, 2024, suggests a potential strain on the company's liquidity position or a significant increase in short-term liabilities relative to cash reserves during this period. A low cash ratio indicates that the company may face difficulty in meeting its short-term obligations solely with cash assets.

It is important for investors and stakeholders to monitor the cash ratio of Royal Caribbean Cruises Ltd over time to assess its liquidity risk and financial health. A sustained improvement in the cash ratio would be favorable, indicating a strong liquidity position and ability to meet short-term obligations comfortably.