Royal Caribbean Cruises Ltd (RCL)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	497,000	600,000	726,424	1,226,870	1,935,000	1,566,210	2,102,200	1,968,500	2,701,770	3,300,000	4,250,370	5,100,000	3,684,470	3,016,790	4,146,690	3,890,810	243,738	276,730	235,001	248,197
Short-term investments	US$ in thousands	25,000	—	—	—	5	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	9,401,000	9,241,680	9,666,860	9,441,540	8,573,000	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	7,952,900	7,113,530	7,586,140	8,105,940
Cash ratio		0.06	0.06	0.08	0.13	0.23	0.16	0.18	0.25	0.37	0.63	0.91	1.54	0.81	0.65	0.88	0.43	0.03	0.04	0.03	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 for Royal Caribbean Group has shown a downward trend over the past four quarters, decreasing from 0.31 in Q1 2022 to 0.12 in Q4 2023. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has weakened.

A cash ratio of 0.12 in Q4 2023 implies that the company had $0.12 in cash and cash equivalents for every $1 of current liabilities, suggesting a relatively lower liquidity position compared to previous quarters. Investors and analysts may view this decreasing trend as a potential liquidity risk for the company, as it may face challenges in meeting its short-term obligations.

It is important for Royal Caribbean Group to closely monitor and manage its cash levels to ensure it maintains an adequate level of liquidity to weather any unforeseen financial challenges. Additionally, the company may need to consider strategies to improve its cash position, such as increasing cash reserves or optimizing working capital management.