Royal Caribbean Cruises Ltd (RCL)

Current ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total current assets US$ in thousands 1,792,000 3,205,000 3,600,270 4,311,750 1,162,630
Total current liabilities US$ in thousands 9,401,000 8,573,000 7,285,680 4,537,120 7,952,900
Current ratio 0.19 0.37 0.49 0.95 0.15

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,792,000K ÷ $9,401,000K
= 0.19

The current ratio of Royal Caribbean Group has exhibited fluctuations over the past five years. The ratio has decreased significantly from 0.95 in 2020 to 0.19 in 2023, indicating a weakening short-term liquidity position. This suggests that the company may face challenges in meeting its short-term obligations with its current assets.

The current ratio was relatively stable around 0.15 in 2019 before experiencing a notable improvement to 0.49 in 2021. This improvement was followed by a decrease to 0.37 in 2022 and a further decline to 0.19 in 2023. These fluctuations indicate variability in the company's ability to cover its short-term liabilities with its current assets over the years.

Overall, the declining trend in Royal Caribbean Group's current ratio reflects potential liquidity concerns and highlights the importance of closely monitoring the company's ability to manage its short-term financial obligations. Further analysis of the company's current asset and current liability composition would provide more insights into its liquidity position.


Peer comparison

Dec 31, 2023


See also:

Royal Caribbean Cruises Ltd Current Ratio